Investment in JHI Associates Inc.

RNS Number : 5457Y

Westmount Energy Limited

10 September 2020

 

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.

10 September 2020

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Investment in JHI Associates Inc.

The Board of Westmount is pleased to announce that it has purchased 1,550,000 common shares in JHI Associates Inc. ("JHI") by way of the issue of 18,290,000 new ordinary shares of no par value in Westmount ("New Ordinary Shares"), which will represent approximately 12.7% of Westmount's enlarged issued share capital. The purchase of 750,000 common shares in JHI has completed on 9 September, 2020 and it is anticipated that the completion of the purchase of the remaining 800,000 shares in JHI will occur within 7 days.

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 17.5% carried interest in the Canje Block covering over 4,800 square kilometres, offshore Guyana. This block is located adjacent to and in the same geologic basin as the Stabroek Block which has delivered sixteen substantial oil discoveries since 2015, with reported discovered recoverable resources in excess of 8 billion oil-equivalent barrels to date.

ExxonMobil, which is the operator of both blocks, acquired in excess of 6,100 km² of 3D seismic on the Canje Block in 2016. Subsequent processing and interpretation of this dataset has been used to define a substantial prospect inventory on the Block with three prospects (Bulletwood, Jabillo, and Sapote) high-graded as potential targets for the initial drilling campaign.  As a result of a 2018 farm-out to Total, JHI is carried for the drilling of up to four wells and is funded for the drilling of additional wells. Subject to Guyanese government approvals, drillship availability and the impact of the COVID-19 pandemic, it is anticipated that the first well on the Canje Block, Bulletwood-1, will be spudded in Q4 2020, with the possibility of additional drilling by the end of the year.

Following the above purchase, Westmount holds a total of 5,113,770 shares in JHI, representing approximately 6.9% of the issued common shares in JHI as of 13^th November 2019. At cost, Westmount's holding in JHI equates to approximately 61.8% of the value of Westmount's gross assets as of 31^st December 2019. Westmount reported a profit for the year ended 30th June 2019 of £2.0 million, whereas JHI reported a profit before tax of USD $43.3 million for the year ended 31st December 2018.

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 .

Total Voting Rights

Pending receipt of the physical certificates for the 1,550,000 common shares in JHI, application will be made for admission of the New Ordinary Shares to trading on AIM, which is expected to occur on or around 25th September 2020. Following admission, the Company's issued share capital will comprise 144,051,486 ordinary shares, which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure Guidance and Transparency Rules.

For further information, please contact:

Westmount Energy Limited                                www.westmountenergy.com

David King, Director                                              Tel: [phone]

Anita Weaver 

Cenkos Securities plc ( Nomad and Broker)  Tel: [phone]

Nicholas Wells/Harry Hargreaves (Corporate Finance)

 

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