REG - Westmount Energy Ld - Investment in JHI Associates Inc.

Westmount EnergyAnnouncement

28/08/2018 10:50

RNS Number : 0005Z
Westmount Energy Limited
28 August 2018
 


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.
 
28th August 2018
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Investment in JHI Associates Inc.
The Board of Westmount is pleased to announce that it has purchased 1,110,000 common shares in JHI Associates Inc. ("JHI") commencing on 31st December 2016 and completing on 24th August 2018. The total consideration, including transaction costs, of £809,840 has been funded from Westmount's existing cash resources.
JHI is a private, Ontario registered, company established in 2014 and focused on oil exploration opportunities in the emerging Guyana-Suriname Basin. The company's main asset is a 40% carried interest (17.5% carried interest, subject to approval of Total Farm-in transaction announced in February 2018) in the Canje Block covering over 6,000 square kilometres, offshore Guyana. This block is located adjacent to and in the same geologic basin as the Stabroek Block which has delivered eight substantial oil discoveries since 2015, with reported discovered recoverable resources in excess of 4 billion oil-equivalent barrels to date.
ExxonMobil, which is the operator of both blocks, acquired in excess of 6100 km2 of 3D seismic on the Canje Block in 2016 and this dataset is currently undergoing processing and interpretation with a view to evaluation of a future drilling program.
Westmount's holding in JHI represents less than 1% of the fully diluted shares and, at cost, as of 31st December 2017, represents approximately fifty-six per cent of Westmount's gross assets. Westmount reported a loss for the Year End 30th June 2017 of £200,500 (audited), whereas JHI incurred a loss of USD $5,203,852 (unaudited) for the Year End 31st December 2017.
This investment is consistent with Westmount's strategy of seeking exposure to opportunities in the prolific Guyana-Suriname Basin, which the Board considers to be a major emerging hydrocarbon province.
 Further disclosure with respect to JHI is available through SEDAR and their website at www.jhiassociates.com.
 

For further information, please contact:
 
Westmount Energy Limited                             www.westmountenergy.com
David King, Director                                               Tel: +44 (0) 1534 823133
Jane Vlahopoulou                                              
 
Cenkos Securities plc (Nomad and Broker)        Tel: +44 (0) 20 7397 8900
Nicholas Wells / Harry Hargreaves (Corporate Finance)




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