Westmount Energy Limited Investment in JHI Associates Inc. (5622M)
12 May 2020 - 4:00PM
UK Regulatory
TIDMWTE
RNS Number : 5622M
Westmount Energy Limited
12 May 2020
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.
12 May 2020
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Investment in JHI Associates Inc.
The Board of Westmount is pleased to announce that it has
purchased 1,350,000 common shares in JHI Associates Inc. ("JHI"),
completing on 11(th) May 2020, by way of the issue of 15,930,000
new ordinary shares of no par value in Westmount ("New Ordinary
Shares"), which will represent approximately 12.7% of Westmount's
enlarged issued share capital. The transaction prices the New
Ordinary Shares in Westmount at 14.745 pence per share.
JHI is a private, Ontario-registered, company established in
2014 and focused on oil exploration opportunities in the emerging
Guyana-Suriname Basin. The company's main asset is a 17.5% carried
interest in the Canje Block covering over 4,800 square kilometres,
offshore Guyana. This block is located adjacent to and in the same
geologic basin as the Stabroek Block which has delivered sixteen
substantial oil discoveries since 2015, with reported discovered
recoverable resources in excess of 8 billion oil-equivalent barrels
to date.
ExxonMobil, which is the operator of both blocks, acquired in
excess of 6,100 km(2) of 3D seismic on the Canje Block in 2016.
Subsequent processing and interpretation of this dataset has been
used to define a substantial prospect inventory on the Block with
three prospects (Bulletwood, Jabillo, and Sapote) high-graded as
potential targets for the initial drilling campaign. As a result of
a 2018 farm-out to Total, JHI is carried for the drilling of up to
four wells and is funded for the drilling of additional wells.
Subject to Guyanese government approvals, drillship availability
and the impact of the COVID-19 pandemic, it is anticipated that the
first well on the Canje Block, Bulletwood-1, will be spudded in H2
2020, with the possibility of additional drilling by the end of the
year.
Following the above purchase, Westmount holds a total of
3,563,770 shares in JHI, representing approximately 4.8% of the
issued common shares in JHI as of 13(th) November 2019. At cost,
Westmount's holding in JHI equates to approximately 38.1% of the
value of Westmount's gross assets as of 31(st) December 2019.
Westmount reported a profit for the year ended 30th June 2019 of
GBP2.0 million, whereas JHI reported a profit before tax of USD
$43.3 million 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, which the Board considers to be a major emerging hydrocarbon
province. Further disclosure with respect to JHI is available
through SEDAR and their website at www.jhiassociates.com .
Total Voting Rights
Pending receipt of the physical certificates for the 1,350,000
common shares in JHI, application will be made for admission of the
New Ordinary Shares to trading on AIM, which is expected to occur
on or around 28th May 2020. Following admission, the Company's
issued share capital will comprise 125,761,486 ordinary shares,
which may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in the
Company under the FCA's Disclosure Guidance and Transparency
Rules.
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)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQKKDBQDBKBQPD
(END) Dow Jones Newswires
May 12, 2020 02:00 ET (06:00 GMT)
Westmount Energy (LSE:WTE)
Historical Stock Chart
From Apr 2024 to May 2024
Westmount Energy (LSE:WTE)
Historical Stock Chart
From May 2023 to May 2024