Westmount Energy (LON:WTE) says there’s tough competition for acquisitions in the oil and gas sector, particularly for exploration assets.
The AIM quoted company, which is seeking investment and acquisition opportunities, said that given its current size and financing ability the process is challenging.
Nevertheless, it added that efforts are continuing to find a suitable transaction.
It already has stakes in two exploration companies, Falkland Oil & Gas (LON:FOGL) and Argos Resources (LON:ARG), both of which are exposed to potential upside from a currently ongoing drilling campaign off the Falkland Islands.
The investment company reported a £222,239 loss for the financial year to June 30, though it noted that during the year it had made share sales - from its holdings in Sterling Energy and FOGL - which had helped cover some running costs.
It also proposed a £633,212 share placing to boost working capital and put the company on a ‘sounder’ financial footing.