19th
March 2024
WESTMOUNT ENERGY
LIMITED
("Westmount" or the "Company")
CEC - Complete Redemption of
Loan Notes via Cash Repayment and Partial
Conversion
Westmount Energy Limited
(UK AIM: WTE.L,
USA OTCQB: WMELF), the
AIM-quoted oil and gas investing company focussed on high impact
drilling outcomes in emerging basins is pleased to report that its
investee Cataleya Energy Corporation ("CEC") has redeemed in full USD
$43,782,722 in convertible loan notes previously issued to a
certain noteholder (the "Noteholder"), a large American Private
Equity Fund, between April 2020 and January 2023. The loan notes
have been redeemed via the repayment of USD $21,590,000 in cash and
the conversion of USD $22,192,722 into 2,458,705 CEC common shares.
The transaction closed on the 15th March 2024 and CEC is
now debt free. As a result of this loan note conversion the
Noteholder has now become a significant shareholder in CEC, with a
shareholding of approximately 21.4% of the enlarged CEC share
capital.
On 27th September 2023 it
was announced that both ExxonMobil and Hess had elected to withdraw
from the Kaieteur Block and return their participating interests to
the original Kaieteur Licence holders, Ratio Guyana Limited ("RGL")
and Cataleya Energy Limited ("CEL"), a wholly owned subsidiary of
CEC. The parties are now awaiting Ministerial approval to reassign
the participating interests, so that RGL and CEL will each retain a
50% participating interest, with RGL as the operator of the
block.
It was also announced that under the
terms of the Kaieteur Petroleum Agreement, and upon submission of
an application to enter the second extension period, the
participating interests on the block will have until February 2025
to commit to drilling a well. A farm-down process is underway with
a view to bringing new entrants, including a deepwater operator, to
the block.
Prior to the redemption of these
loan notes, Westmount held a total of 474,816 common shares in CEC,
representing approximately 5.26% of the issued common shares in
CEC. Post redemption of these loan notes, Westmount retains a
holding of 474,816 common shares in CEC, representing approximately
4.13% of the enlarged issued share capital of CEC.
The southern portion of the Kaieteur
Block is covered by a 5,750km2 3D seismic survey, which
was acquired in 2017/18 and has provided the foundation for
maturing a significant prospect inventory on the block. A single
prospect has been drilled to date which resulted in a
sub-commercial oil discovery. The ExxonMobil operated Tanager-1
well, which was drilled in H2 2020, encountered 16 metres of net
oil pay (20oAPI oil) in high-quality sandstone
reservoirs of Maastrichtian age with a volumetric 'Best Estimate'
Unrisked Gross (2C) Contingent Oil Resource of 65.3 MMBBLs (Low to
High Estimates 17.7 MMBBLs to 131 MMBBLs) - Netherland, Sewell
& Associates Inc. ("NSAI") published CPR (February 14,
2021).
Gerard Walsh, Executive
Chairman of Westmount, commented:
"We are very encouraged to see that
the Noteholder has become a significant shareholder in CEC via the
conversion of USD $22,192,722 of the
outstanding loan notes into 2,458,705 CEC common
shares. We believe that this new investment
into CEC reflects confidence that the ongoing farm-down process can
bring new partners and a resumption of drilling on the Kaieteur
Block, which has been substantially derisked by the Tanager-1
discovery, yet remains underexplored."
For
further information, please contact:
Westmount Energy
Limited
www.westmountenergy.com
David King,
Director
Tel: +44 (0) 1534 823000
email:
westmountenergy@stonehagefleming.com
Cavendish Capital Markets Limited (Nomad and
Broker)
Tel: +44 (0) 20 7397 8900
Neil McDonald/Peter Lynch (Corporate
Finance)