REG - Westmount Energy Ld - Acquisition of North Falklands Basin PL001 by JHI

Westmount EnergyAnnouncement

25/09/2023 13:15

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RNS Number : 5576N  Westmount Energy Limited  25 September 2023

 

 

25(th) September 2022

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Acquisition of North Falklands Basin PL001 by JHI

Westmount Energy Limited (UK AIM: WTE.L, USA OTCQB: WMELF), the AIM-quoted oil
and gas investing company focussed on high impact drilling outcomes in
emerging basins, notes the announcenment today by Argos Resources Limited
("Argos") with respect to the completion of the acquisition by JHI Associates
Inc. ("JHI") of North Falklands Basin Production Licence PL001. As previously
announced by Argos, the consideration for the acquisition of operatorship and
100% working interest ("WI") in PL001 is 8,467,820 JHI Common Shares ("the
Consideration Shares") and £303,500 in cash, with the Consideration Shares
expected to represent approximately 9.3 per cent. of the enlarged share
capital of JHI following completion of the transaction.

 

Production Licence PL001, which covers approximately 1,126 square kilometres,
is located in the North Falklands Basin immediately to the west of the giant
Sea Lion Discovery which has a currently anticipated Final Investment
Decision, for a phased development, in 2024.

Following the completion of this transaction and the passing of resolutions at
the Argos general meeting held on the 22(nd) September 2023, Argos has been
placed into members voluntary liquidation and  Argos shares, which are
currently suspended, will be cancelled from Admission to trading on AIM with
effect from 7am on 26 September 2023. Furthermore, as previously announced by
Argos, having agreed with certain creditors to settle those liabilities using
Consideration Shares, it is anticipated that approximately 7.9 million of the
Consideration Shares will be available for distribution on a pro-rata basis to
Argos' shareholders on the register at the relevant date.

 

JHI is a private, Ontario-registered, company established in 2014 and focused
on oil exploration opportunities in the emerging Guyana-Suriname Basin. The
company's main asset is a 17.5% WI in the Canje Block covering over 4,800
square kilometres, offshore Guyana. This block is located adjacent to and in
the same geologic basin as the Stabroek Block which has delivered more than
thirty substantial oil discoveries since 2015, with reported discovered
recoverable resources of in excess of 11 billion oil-equivalent barrels to
date.

 

The Canje Block is currently operated by an ExxonMobil subsidiary, Esso
Exploration & Production Guyana Limited (35%), with TotalEnergies E&P
Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%), and Mid-Atlantic Oil
& Gas Inc. (12.5%) as partners.

 

Prior to the completion of the JHI-Argos transaction Westmount held a total of
5,651,270 shares in JHI, representing approximately 7.2% of the issued common
shares in JHI as of 31(st) December 2021; Westmount also held 1,000,000 shares
in Argos representing approximately 0.4% of the issued common shares in Argos
as of 3(rd) March 2023. It is anticipated that approximately 33,600 of the
Consideration Shares will be distributed to Westmount as a result of the
company's shareholding in Argos at the relevant date.

The Company also announces that its nominated adviser and broker has changed
its name from Cenkos Securities plc to Cavendish Securities plc following
completion of a corporate merger.

For further information, please contact:

 

Westmount Energy
Limited
www.westmountenergy.com (http://www.westmountenergy.com)

David King,
Director
Tel: +44 (0) 1534 823000

email: westmountenergy@stonehagefleming.com

 

 

Cavendish Securities plc (Nomad and Broker)   Tel: +44 (0) 20 7397 8900

Neil McDonald/Peter Lynch (Corporate Finance)

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