REG - Westmount Energy Ld - Purchase of common shares in Africa Oil Corp.

Westmount EnergyAnnouncement

09/06/2023 07:00

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RNS Number : 1784C  Westmount Energy Limited  09 June 2023

9(th) June 2023

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Purchase of common shares in Africa Oil Corp.

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 announce that it has purchased 300,000 common
shares in Africa Oil Corp. ("AOC"; TSX: AOI.TO, Nasdaq Stockholm: AOI.ST). The
shares have been purchased on the open market at an aggregate cost (including
purchase costs) of £538,633, using Westmount's existing cash resources. This
purchase increases Westmount's indirect exposure to anticipated exploration
drilling on the Canje and Orinduik blocks, offshore Guyana, from 2024 and in
addition provides liquid exposure to the scheduled 2023, up to 4 well,
appraisal drilling and testing program on the giant Venus discovery in the
Orange Basin, offshore Namibia.

 

AOC is a publicly listed Independent E&P company with producing and
development assets in deep-water Nigeria and a portfolio of exploration and
appraisal assets, located offshore west and south Africa as well as offshore
Guyana. AOC holds its interests through direct ownership interests in
concessions and through its shareholdings in private and publicly listed
investee companies, including: Prime Oil & Gas Coöperatief U.A.; Impact
Oil & Gas Ltd.; Africa Energy Corp.; and Eco (Atlantic) Oil and Gas Ltd.
Up to date detailed disclosure with respect to AOC's overall strategy,
portfolio of assets, production guidance, dividend and shareholder return
policies is available via its 'Report to Shareholders for the Period Ended
March 31, 2023'
https://africaoilcorp.com/site/assets/files/1833/2023_africa_oil_corp_-_report_to_shareholders_march31-.pdf
(https://africaoilcorp.com/site/assets/files/1833/2023_africa_oil_corp_-_report_to_shareholders_march31-.pdf)
. Other more recent and historical disclosures are available on its website
www.africaoilcorp.com (http://www.africaoilcorp.com) .

 

Westmount's holding of 300,000 shares in AOC, represents approximately 0.065%
of the issued common shares in AOC as of 31(st) March 2023. At cost,
Westmount's holding in AOC equates to approximately 9.6% of the value of
Westmount's gross assets as of 31st December 2022. Westmount reported a net
loss for the year ended 30th June 2022 of £7.4 million, whereas AOC reported
a net loss of USD $60.3 million for the year ended 31st December 2022.

 

This investment is consistent with Westmount's strategy of seeking exposure to
high impact drilling outcomes, in particular, in the prolific Guyana-Suriname
and Orange basins which the Board considers to be major emerging hydrocarbon
provinces. Westmount is of the view that AOC offers a unique investment
opportunity for its exposure to the giant Venus light oil and associated gas
discovery offshore Namibia, as it is the only publicly-listed independent oil
and gas company with an effective economic interest (approximately 6.2%) in
this field, which is understood to be the largest oil discovery globally in
2022.

This investment in a liquid, publicly traded, entity complements Westmount's
existing exposure to a potential Guyanese drilling program
(Kaieteur/Canje/Orinduik blocks) from 2024, while in the interim providing
Westmount shareholders exposure to potentially high impact, lower risk,
appraisal drilling and testing outcomes on the giant Venus discovery, offshore
Namibia, with anticipated newsflow throughout this 2023 appraisal program.

For further information, please contact:

 

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

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

 
email: westmountenergy@stonehagefleming.com

 

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

Neil McDonald/Peter Lynch (Corporate Finance)

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