Westmount Energy Limited Update from Ratio Petroleum
15 May 2019 - 4:02PM
RNS Non-Regulatory
TIDMWTE
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 km(2) 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 km(2) 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: +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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END
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