United Kingdom-based Westmount Energy Limited is boasting of Guyana’s potential oil reserves as it seeks investors for its projects in the Guyana/Suriname basin, which include the drilling of the first well in the Kaieteur Block offshore Guyana next year.
The company recently announced a subscription extension of shares to raise an additional £0.57 million for works in the Kaieteur Block. It had previously announced a conditional subscription to raise gross proceeds of up to £5 million through the issuance of up to 38,461,538 new ordinary shares.
“Further to the Subscription announcement dated 23 August 2019, the Board of Westmount is pleased to announce a conditional subscription to raise further gross proceeds of approximately £0.57 million (the “Subscription Extension”) through the issue of 4,409,999 new ordinary shares of nil par value (the “Subscription Extension Shares”) at 13 pence per share (the “Issue Price”) to certain existing investors,” it said in a statement. “The Company has received valid applications in respect of 4,409,999 Subscription Extension Shares pursuant to the Subscription Extension… The Subscription Extension Shares will rank, on issue, pari passu in all respects with the existing issued ordinary shares and will be issued free from all liens, charges and encumbrances,” it added. The 13,535 square kilometres Kaieteur Block was acquired by Ratio Energy mere days before the 2015 general elections and on par with ExxonMobil’s first oil find in the Stabroek Block.
On April 28th, 2015, two weeks before polls, the production sharing agreement was signed by both the then Government of Guyana and Ratio’s principals.
ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), is operating the block with a 35% interest. Catalaya Energy and Ratio Guyana each own 25% stake in the block, while a subsidiary of Hess Corporation holds a 15% interest.
Westmont Energy has this year been boasting of its acquisition of shares in Catalaya and playing up the potential of not only the Kaieteur Block but the Guyana basin, where it has two other investments. The company said that its existing portfolio of investments in the basin will allow it to have exposure to between four and seven funded wells during 2019 to 2020.
“The recent announcement, by the Orinduik partners, of the Jethro-1 Oil Discovery, the first well in Westmount’s drilling portfolio, confirms the potential for additional substantial discoveries outside of the Stabroek Block and we look forward to the outcome of the other potentially 6 wells in Westmount’s drilling portfolio over the coming months, including the Tanager-1 well in 2020,” Chairman Gerard Walsh has said.
Under the 2015 agreement that former President Donald Ramotar signed with Ratio Energy, the company will pay a royalty of 1% and, like the ExxonMobil agreement, profits will be split 50/50 between the contractor and government.
Where Exxon and its partners will pay US$1 million annually as licence rental charges and CGX US$100,000, Ratio agreed to pay US $200,000.
The contract states that Ratio will pay US$60,000 for each of its three renewals and that money will be used for the training of locals.
