News blog
Westmount Energy Ltd
- BY: Andrew Hore |
- POSTED: 17/08/2009 |
Westmount Energy Ltd has increased its stake in oil and gas company Sterling Energy and has already more than doubled its money.
Westmount invested just over £550,000 at 1.3p a share for 42.45m Sterling shares. The Sterling share price has recovered to 3.4p. That represents a gain of £890,000 in less than one week.
This sparked a 12.5p rise in the Westmount share price to 53.5p each, which values the company at £3.73m.
Westmount previously owned 31.5m shares in Sterling. The Sterling share price is back to around the level it was at the end of 2008. Sterling raised £62.5m in total at a 53% discount to the then market price. It intends to raise a further £20.6m via an open offer by the end of November 2009.
At the end of 2008 there was £5.2m in cash in the Westmount balance sheet. The net asset value was just under £7m. Since then a 65p a share dividend has been paid at a cost of £4.5m. It appears that Westmount has invested most of the cash it has left in the new Sterling shares.
Sterling has interests in the US, Kurdistan, Cameroon and Madagascar. The interests of former Dana Petroleum and Sibir Energy executive director Michael Kroupeev are taking a 29.9% stake in Sterling.
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