REG - Westmount Energy Ld - CEC - Return of Capital Transaction

Westmount EnergyAnnouncement

09/01/2023 07:00

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RNS Number : 0161M  Westmount Energy Limited  09 January 2023

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.

 

9 January 2023

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

CEC - Return of Capital Transaction and reduction in CEC common shares by 16%

Westmount Energy Limited (UK AIM: WTE.L, USA OTCQB: WMELF), the AIM-quoted oil
and gas investing company focussed on the Guyana-Suriname Basin, has elected
to participate in the pro rata Return of Capital Transaction ("ROC
Transaction") offered to the shareholders of Cataleya Energy Corporation
("CEC") which will reduce the number of outstanding common shares ("Common
Shares") in CEC in issue by 16%. The ROC Transaction completed on 6 January
2023.

 

The ROC Transaction has been structured such that each Participating
Shareholder effectively receives, for each Common Share held prior to the
transaction that is ultimately cancelled pursuant to the ROC Transaction, an
amount equal to approximately USD$3.906 per share. The aggregate amount to be
returned to participating CEC shareholders via the ROC Transaction is
approximately USD $6,720,000, with these funds being provided to CEC through
the issuance of incremental convertible loan notes to a certain noteholder
(the "Noteholder") that previously advanced USD$35,000,000 to CEC in April
2020.

 

Prior to the ROC Transaction, Westmount held a total of 567,185 Common Shares
in CEC, representing approximately 5.28% of the issued common shares in CEC.
Post completion of the ROC Transaction, Westmount holds a total of 474,816
Common Shares in CEC, retaining approximately 5.26% of the issued common
shares of CEC outstanding post the ROC transaction, and will receive
USD$355,954 (net of expenses).

 

CEC holds, via its 100% owned subsidiary Cataleya Energy Ltd. ("CEL"), a 20%
Working Interest ("WI") in the Kaieteur Block, offshore Guyana. Partners on
this block include Esso Exploration and Production Guyana Limited (35%,
operator), Ratio Guyana Limited (25%) and Hess Guyana (Block B) Exploration
Limited (20%). A single well, Tanager-1, has been drilled on the Kaieteur
Block to date and was announced, in November 2020, as an oil discovery which
is currently considered to be non-commercial as a standalone development.
Subsequent to that, in May 2021, it was reported that Hess Corporation had
increased its stake in the Kaieteur Block via the acquisition of an additional
5% WI from CEL. In March 2022, it was announced that the date for elective
nomination, by the operator ExxonMobil, of the prospect target for the 2nd
well on the Kaieteur Block had been extended to 2 October 2023.

 
Gerard Walsh, Executive Chairman of Westmount, commented:

 

"We are very encouraged to see new investment into CEC reflecting confidence
that a resumption of drilling on the Kaieteur Block will occur post the
October 2023 elective nomination date. It is also heartening to see that this
ROC Transaction is being executed without tapping CEC's existing cash
balances, thereby allowing CEC to remain very well financed via cash and
multiple well carries for future drilling activity."

 

For further information, please contact:

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

David King, Director
      Tel: +44 (0) 1534 823059

Anita Weaver

 

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

Nicholas Wells/Neil McDonald/Pete Lynch (Corporate Finance)

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