Investment in JHI Associates Inc.

RNS Number : 4419J

Westmount Energy Limited

22 December 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.

22^nd  December 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 250,000 common shares in JHI Associates Inc. ("JHI") at an aggregate cost of USD$400,000. The purchase of the 250,000 common shares in JHI has completed on 21st December, 2020.

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 eighteen substantial oil discoveries since 2015, with reported discovered recoverable resources of circa 9 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. It is anticipated that the first well in the Canje drilling campaign, Bulletwood-1, will be spudded before the end of the year or soon thereafter, with additional wells to follow-on in the first half of 2021.

Following the above purchase, Westmount holds a total of 5,363,770 shares in JHI, representing approximately 7.2% of the issued common shares in JHI as of 13^th November 2019. At 2020 weighted average JHI transaction costs, Westmount's holding in JHI equates to approximately 67% of the value of Westmount's gross assets as of 30^th June 2020. Westmount reported a loss for the year ended 30th June 2020 of £0.1 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 .

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/Neil McDonald (Corporate Finance)

 

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