Kaieteur Block - Ratio Petroleum update

RNS Number : 6466F

Westmount Energy Limited

22 March 2022

 

22 March 2022

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Kaieteur Block - Ratio Petroleum update with respect to the 2^nd well prospect nomination date

Westmount Energy Limited (UK AIM: WTE. L , USA OTCQB: WMELF ), notes the announcement by Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum") earlier today, that the date for elective nomination, by the operator, of the prospect target for the 2^nd well on the Kaieteur Block has been extended to the 2^nd October, 2023. The Kaieteur Block partners agreed to this extension to facilitate continuing geological and geophysical analysis by the operator and integration of recent and ongoing deep play drilling program results on adjacent blocks into the Kaieteur prospect nomination decision. All costs will be carried by the operator during this extension period¹.

The first well drilled on the Kaieteur block, Tanager-1, evaluated a number of plays - encountering 16 metres of net oil pay (20^oAPI 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 non-commercial 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 require further analysis.

A post-well Netherland, Sewell & Associates Inc. ("NSAI") published CPR²  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).

Subsequent to the Tanager-1 discovery Hess Corporation increased its working interest ("WI") in the Kaieteur Block from 15% to 20% by acquiring a 5% WI from Cataleya Energy Limited ("CEL").

The current Kaieteur Block partners 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%

Westmount holds approximately 5.3% of the issued share capital of Cataleya Energy Corporation³ 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 Announcements by Ratio Petroleum indicate that, under a farm-in agreement executed with ExxonMobil (operator) in 2016, any drilling consequent to the 2^nd well prospect nomination decision will commence within nine months of the nomination date. The operator, as farminee, continues to bear all farmor JV expenses during the prospect nomination extension period.

² CPR by Netherland, Sewell & Associates Inc. ("NSAI") 14 February 2021- published by Ratio Petroleum

³ Based upon number of shares in issue at 10^th August 2020

For further information, please contact:

Westmount Energy Limited	www.westmountenergy.com
David King, Director	Phone: [phone]
Anita Weaver
Cenkos Securities plc (Nomad and Broker)	Phone: [phone]
Nicholas Wells / Neil McDonald (Corporate Finance)

 

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