REG - Westmount Energy Ld - Kaieteur Block – Ratio Petroleum update

Westmount EnergyAnnouncement

22/03/2022 15:00

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RNS Number : 6466F  Westmount Energy Limited  22 March 2022

 

22 March 2022

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Kaieteur Block - Ratio Petroleum update with respect to the 2(nd) well
prospect nomination date

Westmount Energy Limited (UK AIM: WTE. L, USA OTCQB: WMELF), notes the
announcement by Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum")
earlier today, that the date for elective nomination, by the operator, of the
prospect target for the 2(nd) well on the Kaieteur Block has been extended to
the 2(nd) October, 2023. The Kaieteur Block partners agreed to this extension
to facilitate continuing geological and geophysical analysis by the operator
and integration of recent and ongoing deep play drilling program results on
adjacent blocks into the Kaieteur prospect nomination decision. All costs will
be carried by the operator during this extension period(1).

 

The first well drilled on the Kaieteur block, Tanager-1, evaluated a number of
plays - encountering 16 metres of net oil pay (20(o)API oil) in high-quality
sandstone reservoirs of Maastrichtian age and confirming the extension of the
Cretaceous petroleum system and the Liza play fairway outboard from the
prolific discoveries on the neighbouring ExxonMobil operated Stabroek Block.
The well  was reported as an oil discovery which is currently considered to
be non-commercial as a standalone development. Tanager-1 also encountered high
quality reservoirs in deeper Santonian and Turonian plays though
interpretation of the reservoir fluids in these intervals was reported to be
equivocal and require further analysis.

 

A post-well Netherland, Sewell & Associates Inc. ("NSAI") published
CPR(2)  indicates that the Tanager-1 Maastrichtian discovery contains a 'Best
Estimate' Unrisked Gross (2C) Contingent Oil Resource of 65.3 MMBBLs (Low to
High Estimates 17.7 MMBBLs to 131 MMBBLs) - with a 'Best Estimate' Unrisked
Net (2C) Contingent Oil Resource attributable to the Kaieteur Block of 42.7
MMBBLs (Low to High Estimates 11.3 MMBBLs to 86 MMBBLs).

Subsequent to the Tanager-1 discovery Hess Corporation increased its working
interest ("WI") in the Kaieteur Block from 15% to 20% by acquiring a 5% WI
from Cataleya Energy Limited ("CEL").

 

The current Kaieteur Block partners are as follows:

 

 Esso Exploration and Production Guyana Limited                                                  35% (operator)
 Ratio Guyana                                                                                    25%
 Limited
 Cataleya Energy                                                                                 20%
 Limited
 Hess Guyana (Block B) Exploration Limited                                                       20%

 

Westmount holds approximately 5.3% of the issued share capital of Cataleya
Energy Corporation(3) the parent company of CEL and circa 0.04% of the issued
share capital of Ratio Petroleum the ultimate holding entity with respect to
Ratio Guyana Limited.

 

 

(1)Announcements by Ratio Petroleum indicate that, under a farm-in agreement
executed with ExxonMobil (operator) in 2016, any drilling consequent to the
2(nd) well prospect nomination decision will commence within nine months of
the nomination date. The operator, as farminee, continues to bear all farmor
JV expenses during the prospect nomination extension period.

(2)CPR by Netherland, Sewell & Associates Inc. ("NSAI") 14 February 2021-
published by Ratio Petroleum

(3)Based upon number of shares in issue at 10(th) August 2020

 

For further information, please contact:

 

 Westmount Energy Limited                            www.westmountenergy.com (http://www.westmountenergy.com)
 David King, Director                                Phone: +44 (0) 1534 823059
 Anita Weaver

 Cenkos Securities plc (Nomad and Broker)            Phone: +44 (0) 20 7397 8900
 Nicholas Wells / Neil McDonald (Corporate Finance)

 

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