Last checked at 11 Aug 2020 07:00
11th August 2020
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Stena Carron Drillship on location at Tanager-1, Kaieteur Block, offshore Guyana
Westmount Energy Limited (WTE.L) is pleased to note the announcement by Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum"), dated 10 August 2020, that the Stena Carron drillship has arrived on location at the Tanager-1 wellsite on the Kaieteur Block, offshore Guyana and will commence drilling operations imminently.
As previously announced, Westmount holds an indirect interest in the Kaieteur Block as a result of the Company's c.0.7% interest in the issued share capital of Ratio Petroleum and the Company's c.5.4% interest1 in Cataleya Energy Corporation ("CEC"). Both Ratio Petroleum and CEC each hold a 25% participating interest in the Kaieteur Block via their wholly-owned subsidiary companies, Ratio Guyana Ltd. ("RGL") and Cataleya Energy Ltd. ("CEL") respectively. The Kaieteur Block is currently operated by an ExxonMobil subsidiary, Esso Production & Exploration Guyana Limited (35%), with CEL (25%), RGL (25%) and a subsidiary of Hess Corporation (15%) as partners.
Previous announcements by Ratio Petroleum indicate that the Tanager-1 well has a target total depth of 8,000 metres and will take an estimated 90 days to drill2. In addition, the May 2019 Netherland, Sewell & Associates Inc. ("NSAI") report on the Kaieteur Block 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%.
Furthermore, the NSAI report indicates that the aggregate 'Best Estimate' Gross Unrisked Prospective Resources for 9 prospects in the southern part of the Kaieteur Block, where the Tanager prospect is located, is 2.1 BnBBLs (Aggregate Low to High Estimates 694 MMBBLs to 5.85 BnBBLs) implying Net (25%) 525 MMBBLs to each of RGL and CEL across this area which is covered by a 3D seismic survey.
Previous partner announcements indicated that a farm-in agreement ("ExxonMobil FIA") entered into with ExxonMobil in 2016 provided optional carry provisions for both RGL and CEL with respect to the first and second wells on Kaieteur, in the event that ExxonMobil elected to drill these wells on the block. In February 2019, ExxonMobil elected to drill the first well on the block and both RGL and CEL 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. Both RGL and CEL have declined the option to be carried by ExxonMobil on the first well (Tanager-1) thereby retaining their full 25% participating interest each in the Kaieteur Block.
Further information with respect to Tanager-1 and the Kaieteur Block is available on Ratio Petroleum's website (www.ratiopetroleum.com) and the Tel Aviv Stock Exchange website: https://maya.tase.co.il/company/1672?view=reports.
1Based on Cataleya Energy Corporation issued share capital as at 30th August, 2019.
2All timetables may be subject to COVID-19 disruptions.
Gerard Walsh, Chairman of Westmount Energy Ltd. commented:
"Tanager-1 is the first well in a potential multi-well drilling campaign being operated by ExxonMobil on the Kaieteur and Canje Blocks over the next 6 to 12 months. This campaign will evaluate high impact Upper Cretaceous prospects in the Liza play fairway with, in some cases, multiple stacked reservoir targets. It also provides Westmount shareholders exposure to a portfolio of drilling outcomes over a compressed timeframe. Success from some of the wells in this portfolio could result in transformational value changes for Westmount."
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For further information, please contact:
Westmount Energy Limited www.westmountenergy.com
David King, Director Tel: +44 (0) 1534 823059
Anita Weaver
Cenkos Securities plc (Nomad and Broker) Tel: +44 (0) 20 7397 8900
Nicholas Wells/Harry Hargreaves (Corporate Finance)