4th November 2024
WESTMOUNT ENERGY
LIMITED
("Westmount" or the "Company")
Namibian exploration and
appraisal program - Africa Oil Corp update
· Tamboti-1X exploration well - 1bn bbl target1 - spudded 20th
October 2024
· Additional 3D seismic acquisition programs in 2024 facilitate
the potential for follow-on high impact exploration
drilling2
· Venus
Phase 1 development scheme expected to be finalised by end
2025
· Completion of Impact/TotalEnergies Farm-down transaction -
with Impact in receipt of USD$99M and Impact's retained 9.5%
interest in Blocks 2912 and 2913B fully 'loan carried' for all
remaining exploration, appraisal and development costs,
with no cap, through to
first oil production
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, notes the update provided on
1st November by its investee company Africa Oil Corp.
("AOC"; TSX: AOI.TO, Nasdaq Stockholm: AOI.ST) with respect
to exploration, appraisal and development activities on Blocks
2913B and 2912, in the Orange Basin, offshore Namibia.
The update highlights the resumption
of exploration drilling on Block 2913B with the spudding of the
Tamboti-1X exploration well - a 1bn bbl target1 - on 20th
October 2024. Tamboti-1X, which is being drilled using the DeepSea
Mira rig, is located north of the Venus accumulation and close to
the Mangetti-1X discovery. The update also notes the completion of
two 3D seismic acquisition programs during 2024, which has resulted
in most of the Block 2913B and Block 2912 licensed area now being
covered by 3D seismic - facilitating the potential for discovery of
significant additional resources via follow-on high impact
exploration drilling2.
In addition, the update confirms the successful appraisal of the
giant Venus light oil accumulation via the drilling and testing of
the Venus-1X ST, Venus-1A, Venus-2A and Mangetti-1X appraisal
wells. As a result, planning is currently progressing for the
first development area, with a Phase 1 development scheme expected
to be finalized by the end of 2025.
Finally, the update reports that
AOC's investee company, Impact Oil & Gas Limited ("Impact"),
has completed the farm-down of its interests in Blocks 2912 and
2913B ("the Blocks") to TotalEnergies EP Namibia B.V.
("TotalEnergies") - as announced on 10th January
2024. Further to this transaction, Impact
has received a cash payment of circa USD$99M (back costs) and
Impact's retained 9.5% interest in each of the
Blocks is fully 'loan carried' for all remaining exploration,
appraisal and development costs, with no cap, through to sales proceeds
from first oil. The carry loan is repayable from a share of
Impact's after-tax cash flows, and net of all joint venture costs,
including capital expenditures, from production on the
Blocks.
AOC is a publicly listed Independent
E&P company with producing and development assets in deep-water
Nigeria and a portfolio of exploration and appraisal assets,
located offshore west and south Africa as well as offshore Guyana.
AOC currently holds its interests through direct ownership
interests in concessions and through its shareholdings in private
and publicly listed investee companies, including: Prime Oil &
Gas Coöperatief U.A.; Impact Oil & Gas Ltd.; Africa Energy
Corp.; and Eco (Atlantic) Oil and Gas Ltd. Up to date detailed
disclosure with respect to AOC's overall strategy, portfolio of
assets, production guidance, dividend and shareholder return
policies is available via its 'Report to Shareholders for the
Period Ended June 30, 2024'
https://africaoilcorp.com/wp-content/uploads/2024/08/AFRICA-OIL-CORP-2024-June-30-Report-to-Shareholders.pdf
Other more recent and historical
disclosures are available on its website www.africaoilcorp.com.
AOC currently has a shareholding of
approximately 32.4% in Impact. Upon closing of the call and put
option agreement with three Impact shareholders, announced on
August 27, 2024, AOC will increase its shareholding in Impact to
approximately 39.5%, which represents an effective economic
interest of approximately 3.8% in the Blocks. Westmount's holding
of 300,000 shares in AOC, represents approximately 0.068% of the
issued common shares in AOC as of 31st July 2024. This
investment provides liquid exposure to the ongoing fully 'loan
carried' exploration, appraisal and development activities on
Blocks 2913B and 2912 which contain the Venus and Mangetti
discoveries and a number of other giant exploration
targets.
Gerard Walsh, Chairman of Westmount Energy Ltd.
commented:
"The announcement by our investee
AOC that exploration drilling has recommenced on Block 2913B with
the spudding of a 1bn bbl prospect at Tamboti-1X to the north of
the giant Venus accumulation, and potential follow-on
drilling to the south of Venus, is good news. It confirms our view
that the Orange basin is a major emerging, prolific, hydrocarbon
province and that Blocks 2913B and 2912 contain a prospect
inventory with the potential for significant resource additions to
that which has already been discovered at Venus and Mangetti. This
exploration drilling is taking place in parallel with progress on
the Phase 1 development scheme for Venus which is expected to be
finalised by the end of 2025. In addition, further to the
completion of the Impact/TotalEnergies transaction, the AOC/Impact
share of all of this exploration, appraisal and development work is
now funded by an interest free 'loan carry', with no cap. Westmount's shareholding
in AOC offers continuing exposure to an exciting funded program of
high impact drilling in the Orange Basin and we look forward to
further newsflow in this regard."
1https://totalenergies.com/sites/g/files/nytnzq121/files/documents/totalenergies_TotalEnergies-Strategy-and-Outlook-transcript_2024_pdf.pdf
2https://totalenergies.com/sites/g/files/nytnzq121/files/documents/totalenergies_2024-strategy-and-outlook-presentation_2024_en_pdf.pdf
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)
