Westmount Energy release
Westmount Energy Limited (UK AIM: WTE.L, USA OTCQB: WMELF), is pleased to note the announcement by Ratio Petroleum Energy Limited Partnership (“Ratio Petroleum”) yesterday, that Hess Corporation (“Hess”) has increased its working interest (“WI”) in the Kaieteur Block, offshore Guyana, from 15% to 20%.
Source: Reuters
This increase in Hess Corporation’s Kaieteur Block WI has occurred on the back of the Tanager-1 oil discovery, announced in November 2020, and via the farm-down of a 5% WI by Cataleya Energy Limited (“CEL”) to Hess.
Tanager-1, the first well drilled on the Kaieteur block, encountered 16 metres of net oil pay (20oAPI oil) in high-quality sandstone reservoirs of Maastrichtian age and confirmed the extension of the Cretaceous petroleum system and the Liza play fairway outboard from the prolific discoveries on the neighbouring ExxonMobil operated Stabroek Block. The well was reported as an oil discovery which is currently considered to be non-commercial as a standalone development. High quality reservoirs were also encountered in Tanager-1 at the deeper Santonian and Turonian intervals though interpretation of the reservoir fluids was reported to be equivocal and require further analysis.
A post-well Netherland, Sewell & Associates Inc. (“NSAI”) published CPR1 indicates that the Tanager-1 Maastrichtian discovery contains a ‘Best Estimate’ Unrisked Gross (2C) Contingent Oil Resource of 65.3 MMBBLs (Low to High Estimates 17.7 MMBBLs to 131 MMBBLs) – with a ‘Best Estimate’ Unrisked Net (2C) Contingent Oil Resource attributable to the Kaieteur Block of 42.7 MMBBLs (Low to High Estimates 11.3 MMBBLs to 86 MMBBLs).
In addition to the Tanager-1 oil discovery a substantial Cretaceous prospect inventory has been mapped across the 5,750 km2 3D seismic survey, located in the southern part of the block, where the Kaieteur JV partners are currently high grading the next potential drilling targets.
Post the CEL farm-down the Kaieteur JV is composed of the following holdings:
| Esso Exploration and Production Guyana Limited | 35% (operator) |
| Ratio Guyana Limited | 25% |
| Cataleya Energy Limited | 20% |
| Hess Guyana (Block B) Exploration Limited | 20% |
Westmount holds approximately 5.3% of the issued share capital of Cataleya Energy Corporation2 the parent company of CEL and circa 0.04% of the issued share capital of Ratio Petroleum the ultimate holding entity with respect to Ratio Guyana Limited.
Gerard Walsh, Executive Chairman of Westmount, commented:
“We are very encouraged to see Hess, one of the Stabroek Block (18 discoveries; 9 billion oil-equivalent barrels discovered to date) partners and a leading player in the Guyana-Suriname Basin, increase its WI in the Kaieteur Block on the back of the 2020 Tanager-1 oil discovery.”
“This move is consistent with the Stabroek partners’ assessment that the total basin potential of the Guyana-Suriname Basin is now more than twice the discovered resource to date3 – indicating a potential yet-to-find resource in excess of 10 billion oil-equivalent barrels across the basin. It is also consistent with the view that considerable hydrocarbon resource potential may be present in the newly emerging deeper plays, such as the Lower Campanian/Upper Santonian play, where the 3D seismic data suggests that the channel systems are at least as extensive in area as they are in the shallower Maastrichtian/Upper Campanian Liza play fairway.”4
“We believe this farm-in transaction reflects confidence in the prospective resource potential of the Kaieteur Block and augurs well for the continuing exploration of the area.”
1CPR by Netherland, Sewell & Associates Inc. (“NSAI”) 14 February 2021- published by Ratio Petroleum
2Based upon number of shares in issue at 10th August 2020
3ExxonMobil 2021 Investor Day Presentation
4Hess Corporation – Citi 2021 Global Energy & Utilities Virtual Conference 11th May, 2021
