Westmount Energy Limited Investment in Cataleya Energy Corporation (6337K)
30 Agosto 2019 - 1:04AM
UK Regulatory
TIDMWTE
RNS Number : 6337K
Westmount Energy Limited
30 August 2019
The information contained within this announcement (the
"Announcement") is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014. Upon the publication of this Announcement via
Regulatory Information Service ("RIS"), this inside information is
now considered to be in the public domain.
30(th) August 2019
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Additional Investment in Cataleya Energy Corporation
Further to the Susbcription announcement dated 23(rd) August
2019, the Board of Westmount is pleased to announce that it has
entered into unconditional agreements to acquire an additional
313,500 common shares in Cateleya Energy Corporation ("CEC") at a
price of USD $10 per share, for total consideration of US$3,135,000
million (equivalent to GBP GBP2,582,372) including transaction
costs.
CEC is a private, Canadian-registered, company established in
2015 and focused on oil exploration opportunities in the emerging
Guyana-Suriname Basin. CEC's main asset is a 25% participating
interest in the Kaieteur Block, which it holds through its
wholly-owned subsidiary Cataleya Energy Limited ("CEL"). The 13,500
km(2) Kaieteur Block is located outboard of, and adjacent to, the
Ranger Oil Discovery which is located on the Stabroek Block,
offshore Guyana.
The Kaieteur Block was awarded in early 2015 to CEL (formerly
Ratio Energy Limited) and Ratio Guyana Limited, a subsidiary of
Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum").
Subsequent to the Upper Cretaceous play-opening Liza-1 discovery in
May 2015, a farm-in agreement ("ExxonMobil FIA") executed with
ExxonMobil and various other arrangements, the effective date of
the Kaieteur Petroleum Agreement was amended to February 2017. The
Kaieteur Block is currently operated by an ExxonMobil subsidiary,
Esso Production & Exploration Guyana Limited (35%), with CEL
(25%), Ratio Guyana Limited (25%) and a subsidiary of Hess
Corporation (15%) as partners.
A Competent Person's Report ("CPR") on the Kaieteur Block, which
has been carried out by Netherland, Sewell & Associates Inc.
("NSAI") and published by Ratio Petroleum on 14 May 2019, provides
estimates of the unrisked prospective oil resources in 9 prospects
located on the 5,750 km(2) 3D seismic survey acquired in the
southern part of the Kaieteur Block in 2017. This 3D survey covers
circa 42% of the total area of the Kaieteur Block. 'Best Estimate'
of Unrisked Gross Prospective Oil Resources for individual
prospects ranges from 76.1 MMBBLs (Towa-Towa Prospect) to 702.7
MMBBLs (Toucan Prospect). Aggregate 'Best Estimate' Gross Unrisked
Prospective Resources for these 9 prospects is 2.1 BnBBLs
(Aggregate Low to High Estimates 694 MMBBLs to 5.85 BnBBLs)
implying Aggregate Net Best Estimate 525 MMBBLs (Aggregate Net Low
to High Estimate 174 MMbbls to 1.46 BnBBLs) to CEC (25%) across the
area of the Kaieteur 3D seismic survey. The CPR can be viewed on,
or downloaded from, the Tel Aviv Stock Exchange website here.
On 14th May 2019, Ratio Petroleum also announced that ExxonMobil
and partners are planning to spud the first well in the Kaieteur
Block on the Tanager Prospect in the first half of 2020 - subject
to the standard permitting and regulatory approvals. The NSAI
report describes the Tanager Prospect as a stacked reservoir
prospect (Maastrichtian to Turonian reservoir intervals) and
assigns a 'Best Estimate' Unrisked Gross (100%) Prospective Oil
Resource of 256.2 MMBBLs to the prospect (Low to High Estimates
135.6 MMBBLs to 451.6 MMBBLs), with an aggregate Probability of
Geologic Success (POSg) of 72%.
The investment has been funded from Westmount's existing cash
resources, including the net proceeds of the Subscription announced
by the Company on 23(rd) August 2019. At cost, Westmount's holding
in CEC equates to approximately 109% of the value of Westmount's
gross assets as of 31(st) December 2018. Westmount reported a
profit for the interim period ended 31(st) December 2018 of
GBP0.259 million (unaudited), whereas CEC reported a net loss of
USD $44,481 (draft, unaudited) for the year ended 31(st) December
2018. As a result of this share purchase, Westmount's holds a total
of 567,185 common shares in CEC, representing approximately 5.4% of
the fully diluted share capital of CEC as of 29(th) August
2019.
Westmount's strategy continues to be to seek exposure to
opportunities in the prolific Guyana-Suriname Basin, a major
emerging hydrocarbon province where, since 2015, ExxonMobil and its
Stabroek Block partners have reported discovered recoverable
resources in excess of 6 billion oil-equivalent barrels and 13
successes out of 15 exploration wells. Through the Company's
existing portfolio of investments in this basin, the Board believes
that the Company will have exposure to between four and seven
funded wells during 2019-2020, including the recently announced
Jethro-1 Oil Discovery well, the currently drilling Joe-1 well
(both located on the Orinduik Block) and the Tanager-1 well
(located on the Kaieteur block) which is scheduled to be spudded in
the first half of 2020.
Gerard Walsh, Chairman of Westmount Energy Ltd. commented:
"Our investment in CEC is consistent with Westmount's strategy
of seeking exposure to opportunities in the prolific
Guyana-Suriname Basin and it compliments Westmount's existing
portfolio of investments which, in the view of the Board, offers
shareholders exposure to up to 7 fully funded wells during
2019-2020.
The recent announcement, by the Orinduik partners, of the
Jethro-1 Oil Discovery, the first well in Westmount's drilling
portfolio, confirms the potential for additional substantial
discoveries outside of the Stabroek Block and we look forwards to
the outcome of the other potentially 6 wells in Westmount's
drilling portfolio over the coming months, including the Tanager-1
well in 2020."
For further information, please contact:
Westmount Energy Limited www.westmountenergy.com
David King, Director Tel: +44 (0) 1534 823133
Jane Vlahopoulou
Cenkos Securities plc (Nomad and Broker) Tel: +44 (0) 20 7397 8900
Nicholas Wells/Harry Hargreaves (Corporate Finance)
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END
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