Last checked at 14 May 2019 07:00
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.
14th May 2019
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Investment in Cataleya Energy Corporation
The Board of Westmount is pleased to announce that it has participated in a non-brokered private placement by Cateleya Energy Corporation ("CEC") through the purchase of 253,685 common shares at USD $10 per share. The total consideration, including transaction costs, of USD $2,536,850 (equivalent to GBP £1,949,324) has been funded from Westmount's existing cash resources. The placement, which was completed on the 10th May 2019, assigned a pre-money valuation to CEC of USD $100,000,000.
CEC is a private, Canadian-registered, company established in 2015 and focused on oil exploration opportunities in the emerging Guyana-Suriname Basin. CEC's main asset is a 25% participating interest in the Kaieteur Block, which it holds through its wholly-owned subsidiary Cataleya Energy Limited ("CEL"). 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 Kaieteur Block was originally awarded in early 2015 to CEL (formerly Ratio Energy Limited) (50%) and Ratio Guyana Limited (50%), a subsidiary of Ratio Petroleum Energy Limited Partnership. Subsequent to the Upper Cretaceous play-opening Liza-1 discovery in May 2015, a farm-in agreement ("ExxonMobil FIA") executed with ExxonMobil and various other arrangements, the effective date of the Kaieteur Petroleum Agreement was amended to February 2017. The block is currently operated by an ExxonMobil subsidiary, Esso Production & Exploration Guyana Limited (35%), with CEL (25%), Ratio Guyana Limited (25%) and a subsidiary of Hess Corporation (15%) as partners.
Pursuant to the ExxonMobil FIA, a 5,750 km2 3D seismic survey was acquired in the southern part of the Kaieteur Block in 2017. Processing and interpretation of this dataset has been used to develop a prospect inventory and, together with prospect maturation studies, is being used to identify appropriate targets for a drilling program.
Previous partner announcements with respect to the ExxonMobil FIA indicate, inter alia, optional carry provisions for CEL (and Ratio Guyana Limited) with respect to the first and second wells on Kaieteur, in the event that ExxonMobil elects to drill on the block. ExxonMobil has now elected to drill on the block and CEL retains, 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 CEL's working 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.
As a result of its participation in the private placement, Westmount's shareholding in CEC represents approximately 2.4% of the fully diluted share capital of CEC, as of 10th May 2019. At cost, Westmount's holding in CEC equates to approximately 47% of the value of Westmount's gross assets as of 31st December 2018. Westmount reported a profit for the interim period ended 31st December 2018 of £0.259 million (unaudited), whereas CEC reported a net loss of USD $44,481 (draft, unaudited) 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 and it compliments Westmount's existing portfolio of investments which, in the view of the Board, offers shareholders exposure to an estimated 4 to 7 fully funded wells over the next 12-18 months in the most prolific emerging hydrocarbon province worldwide.
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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