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

Westmount EnergyAnnouncement

27/09/2023 16:00

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RNS Number : 8824N  Westmount Energy Limited  27 September 2023

 

 

27(th) September 2023

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Kaieteur Block - Ratio Petroleum Update

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 Ratio Petroleum Energy
Limited Partnership ("Ratio Petroleum"), that ExxonMobil has now decided not
to commit to drilling a second well on the Kaieteur Block(1) and that both
ExxonMobil and Hess Corporation have elected to withdraw from the Kaieteur
Block and return their  participating interests to the original Kaieteur
Licence holders Ratio Guyana Limited and Cataleya Energy Limited. The parties
will now seek government approval to reassign the participating interests, so
that Ratio Guyana Limited and Cataleya Energy Limited will each retain a 50%
participating interest, and appoint Ratio Guyana Limited as the operator of
the block. .

 

The current Kaieteur Block participating interests are as follows:

 

Esso Exploration and Production Guyana Limited 35% (operator)

Ratio Guyana Limited 25%

Cataleya Energy Limited 20%

Hess Guyana (Block B) Exploration Limited 20%

 

After reassignment of the participating interests the revised Kaieteur Block
interests will be as follows:

 

Ratio Guyana Limited 50% (operator)

Cataleya Energy Limited 50%

It is also noted that the announcement by Ratio Petroleum states that under
the terms of the Kaieteur Petroleum Agreement, and upon submission of an
application to enter the second extension period(2), the participating
interests on the block will have until February 2025 to commit to drilling a
well. Furthermore, it is noted, that Ratio Petroleum is seeking a farm-down of
participating interests and operatorship and, in this context, is already in
discussions with major oil companies with a view to bringing a new entrant or
entrants to the block.

 

In this regard, it is also of note that the two deepwater blocks (D1 &
D2), immediately adjacent to the Kaieteur block, have been the subject of at
least one application during the recent Guyanese Bid Round(3) which offered
acreage under less benign fiscal terms than the original Kaieteur Block
terms.

In 2020, 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 noncommercial 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 requirefurther analysis.

A post-well Netherland, Sewell & Associates Inc. ("NSAI") published CPR(4)
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).

 

 

Westmount holds approximately 5.26% of the issued share capital of Cataleya
Energy Corporation(5), 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)Previous announcements by Ratio Petroleum indicate that, under a farm-in
agreement executed with ExxonMobil in 2016, the original Kaieteur 2nd well
prospect nomination date was 22nd August 2021, with any drilling consequent to
this decision to commence within nine months of the nomination date. The
prospect nomination date was subsequently extended twice by agreement to
22(nd) March 2022 and again to the 2(nd) October 2023.

 

(2)The Kaieteur Petroleum Agreement is currently in the first extension
period, which began on February 2, 2021 and lasts for 3 years.

 

(3)https://oilnow.gy/featured/ali-jagdeo-see-guyana-oil-bid-responses-as-favourable-given-governments-terms/
(https://oilnow.gy/featured/ali-jagdeo-see-guyana-oil-bid-responses-as-favourable-given-governments-terms/)

( )

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

Petroleum

(5)Based upon number of shares in issue at 6(th) January 2023

 

 

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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