Westmount Energy Limited Investment in Cataleya Energy Corporation (8913Y)
May 14 2019 - 2:01AM
UK Regulatory
TIDMWTE
RNS Number : 8913Y
Westmount Energy Limited
14 May 2019
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.
14(th) 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
GBP1,949,324) has been funded from Westmount's existing cash
resources. The placement, which was completed on the 10(th) 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
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 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 km(2) 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 14(th) 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 10(th) May 2019. At
cost, Westmount's holding in CEC equates to approximately 47% of
the value of Westmount's gross assets as of 31(st) December 2018.
Westmount reported a profit for the interim period ended 31(st)
December 2018 of GBP0.259 million (unaudited), whereas CEC reported
a net loss of USD $44,481 (draft, unaudited) for the year ended
31(st) 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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END
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