REG - Westmount Energy Ld - CEC - Complete Redemption of Loan Notes

Westmount EnergyAnnouncement

19/03/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240319:nRSS3218Ha&default-theme=true

RNS Number : 3218H  Westmount Energy Limited  19 March 2024

 

 

19th March 2024

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

CEC - Complete Redemption of Loan Notes via Cash Repayment and Partial
Conversion

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 is pleased to report that its investee Cataleya Energy
Corporation ("CEC") has redeemed in full USD $43,782,722 in convertible loan
notes previously issued to a certain noteholder (the "Noteholder"), a large
American Private Equity Fund, between April 2020 and January 2023. The loan
notes have been redeemed via the repayment of USD $21,590,000 in cash and the
conversion of USD $22,192,722 into 2,458,705 CEC common shares. The
transaction closed on the 15(th) March 2024 and CEC is now debt free. As a
result of this loan note conversion the Noteholder has now become a
significant shareholder in CEC, with a shareholding of approximately 21.4% of
the enlarged CEC share capital.

 

On 27(th) September 2023 it was announced that both ExxonMobil and Hess had
elected to withdraw from the Kaieteur Block and return their participating
interests to the original Kaieteur Licence holders, Ratio Guyana Limited
("RGL") and Cataleya Energy Limited ("CEL"), a wholly owned subsidiary of CEC.
The parties are now awaiting Ministerial approval to reassign the
participating interests, so that RGL and CEL will each retain a 50%
participating interest, with RGL as the operator of the block.

 

It was also announced that under the terms of the Kaieteur Petroleum
Agreement, and upon submission of an application to enter the second extension
period, the participating interests on the block will have until February 2025
to commit to drilling a well. A farm-down process is underway with a view to
bringing new entrants, including a deepwater operator, to the block.

 

Prior to the redemption of these loan notes, Westmount held a total of 474,816
common shares in CEC, representing approximately 5.26% of the issued common
shares in CEC. Post redemption of these loan notes, Westmount retains a
holding of 474,816 common shares in CEC, representing approximately 4.13% of
the enlarged issued share capital of CEC.

 

The southern portion of the Kaieteur Block is covered by a 5,750km(2) 3D
seismic survey, which was acquired in 2017/18 and has provided the foundation
for maturing a significant prospect inventory on the block. A single prospect
has been drilled to date which resulted in a sub-commercial oil discovery. The
ExxonMobil operated Tanager-1 well, which was drilled in H2 2020, encountered
16 metres of net oil pay (20(o)API oil) in high-quality sandstone reservoirs
of Maastrichtian age with a volumetric 'Best Estimate' Unrisked Gross (2C)
Contingent Oil Resource of 65.3 MMBBLs (Low to High Estimates 17.7 MMBBLs to
131 MMBBLs) - Netherland, Sewell & Associates Inc. ("NSAI") published CPR
(February 14, 2021).

Gerard Walsh, Executive Chairman of Westmount, commented:

 

"We are very encouraged to see that the Noteholder has become a significant
shareholder in CEC via the conversion of USD $22,192,722 of the outstanding
loan notes into 2,458,705 CEC common shares. We believe that this new
investment into CEC reflects confidence that the ongoing farm-down process can
bring new partners and a resumption of drilling on the Kaieteur Block, which
has been substantially derisked by the Tanager-1 discovery, yet remains
underexplored."

 

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
(../../../../DATA%20STORAGE%20DC/160505_Dermot%20Backup/DErmot/Westmount%20Project/Namibia/Africa%20Oil%20Corp/westmountenergy@stonehagefleming.com)

 

Cavendish Capital Markets Limited (Nomad and Broker)           Tel:
+44 (0) 20 7397 8900

Neil McDonald/Peter Lynch (Corporate Finance)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGPUWAWUPCPUR