Update from Ratio Petroleum

RNS Number : 0378Z

Westmount Energy Limited

15 May 2019

 

15^th May 2019

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Investments in Cataleya Energy Corporation & Ratio Petroleum

- Update from Kaieteur Block Partner, Ratio Petroleum

·     Ratio Petroleum publish CPR on Kaieteur carried out by Netherland, Sewell & Associates Inc.

·     ExxonMobil planning to spud the first well in the Kaieteur Block on the Tanager Prospect in the first half of 2020

·     Tanager Prospect assigned a 'Best Estimate' Unrisked Gross (100%) Prospective Oil Resource of 256.2 MMBBLs with an aggregate Probability of Geologic Success (POSg) of 72%.

·     Aggregate 'Best Estimate' Gross Unrisked Prospective Resources for top 9 prospects is 2.1 BnBBLs

·     Ratio Petroleum and Cataleya decline option to be carried by Exxon Mobil on the first well (Tanager)

 

Subsequent to the participation of Westmount in a non-brokered private placement by Cateleya Energy Corporation ("CEC"), announced on the 14^th May 2019, the Board of Westmount is pleased to highlight some additional information, with respect to the Kaieteur Block offshore Guyana, published by Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum") on the same date. CEC and Ratio Petroleum each holds through wholly-owned subsidiaries, respectively Cataleya Energy Limited ("CEL") and Ratio Guyana Limited ("RGL"), a 25% participating interest in the Kaieteur Block. Other partners include a subsidiary of Hess Corporation (15%) and the operator of the block, Esso Production & Exploration Guyana Limited (35%), a subsidiary of ExxonMobil. The 13,500 km² Kaieteur Block is located outboard of, and adjacent to, the Stabroek Block offshore Guyana which has delivered thirteen substantial oil discoveries since 2015, with reported discovered recoverable resources in excess of 5.5 billion oil-equivalent barrels to date.

The Ratio Petroleum announcement provides an update with respect to drilling plans for Kaieteur, farm-in carry arrangements pursuant to a farm-in agreement ("ExxonMobil FIA") executed with ExxonMobil in 2016 and unrisked prospective resources by way of report commissioned from Netherland, Sewell & Associates Inc. ("NSAI")

Previous partner announcements with respect to the ExxonMobil FIA indicate, inter alia, optional carry provisions for CEL (and RGL) with respect to the first and second wells on Kaieteur, in the event that ExxonMobil elects to drill on the block. In February 2019 ExxonMobil elected to drill on the block and both CEL and RGL retained, until the 14th May 2019, the option to be carried by ExxonMobil in the first well in return for the assignment of a 10% working interest in Kaieteur to ExxonMobil (thereby reducing both CEL's and RGL's participating interest from 25% to 15%) and the option to be carried on a second well in return for the assignment of a further 7.5% working interest each.

The current Ratio Petroleum announcement indicates that ExxonMobil and partners are now planning to spud the first well in the Kaieteur Block on the Tanager Prospect in the first half of 2020 - subject to the standard permitting and regulatory approvals. The NSAI report describes the Tanager Prospect as a stacked reservoir prospect (Maastrichtian to Turonian reservoir intervals) and assigns a 'Best Estimate' Unrisked Gross (100%) Prospective Oil Resource of 256.2 MMBBLs to the prospect (Low to High Estimates 135.6 MMBBLs to 451.6 MMBBLs), with an aggregate Probability of Geologic Success (POSg) of 72%. 

The announcement also states that Ratio Petroleum has declined the option to be carried by ExxonMobil on the first well and will thereby retain a 25% participating interest in the Kaieteur Block.  CEC has also declined the option to be carried by ExxonMobil on the first well thereby retaining its full 25% participating interest.

The NSAI report provides estimates of the unrisked prospective oil resources in 9 prospects located on the 5,750 km² 3D seismic survey acquired in the southern part of the Kaieteur Block in 2017. This 3D survey covers circa 42% of the total area of the Kaieteur Block. 'Best Estimate' of Unrisked Gross Prospective Oil Resources for individual prospects ranges from 76.1 MMBBLs (Towa-Towa Prospect) to 702.7 MMBBLs (Toucan Prospect). Aggregate 'Best Estimate' Gross Unrisked Prospective Resources for these 9 prospects is 2.1 BnBBLs (Aggregate Low to High Estimates 694 MMBBLs to 5.85 BnBBLs) implying Net (25%) 525 MMBBLs to each of CEC and Ratio Petroleum across the area of the Kaieteur 3D seismic survey. 

Westmount holds approximately 2.4% of the issued share capital of CEC and approximately 1% of the issued share capital of Ratio Petroleum.

For further information, please contact:

Westmount Energy Limited                             www.westmountenergy.com

David King, Director                                            Tel: [phone]

Jane Vlahopoulou                                              

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

Nicholas Wells/Harry Hargreaves (Corporate Finance)

 

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