Westmount Energy notes the announcement by Ratio Petroleum Energy, that the date for elective nomination, by the operator, of the prospect target for the 2nd well on the Kaieteur Block has been extended by seven months to the 22nd March, 2022.(1) The Kaieteur Block partners agreed to this extension to facilitate continuing analysis by the operator and integration of extensive multi-play drilling results and comprehensive data collection programs into regional petroleum system models and the prospect nomination decision.  

The first well drilled on the Kaieteur block, Tanager-1, evaluated a number of plays - encountering 16 metres of net oil pay (20oAPI oil) in high-quality sandstone reservoirs of Maastrichtian age and confirming 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. Tanager-1 also encountered high quality reservoirs in deeper Santonian and Turonian plays though interpretation of the reservoir fluids in these intervals was reported to be equivocal and require further analysis.

A post-well Netherland, Sewell & Associates Inc. ("NSAI") published CPR(2)  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).

Subsequent to the Tanager-1 discovery Hess increased its working interest ("WI") in the Kaieteur Block from 15% to 20% by acquiring a 5% WI from Cataleya Energy Limited ("CEL").

The current Kaieteur Block partners are as follows:

• 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 Corporation3 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.

(1)  Announcements by Ratio Petroleum indicate that, under a farm-in agreement executed with ExxonMobil in 2016, the original Kaieteur 2nd well prospect nomination date was 22nd August 2021, with any drilling consequent to this decision to commence within nine months of the nomination date. 
(2) CPR by Netherland, Sewell & Associates Inc. ("NSAI") 14 February 2021- published by Ratio Petroleum
(3) Based upon number of shares in issue at 10th August 2020

Kaieteur block

The Kaieteur block is located approximately 155 miles (approximately 250 kilometers) offshore the coast of Guyana, adjacent to the Stabroek Block. The Kaieteur Block is approximately 3.3 million acres (approximately 13,535 square kilometers), which is equivalent in size to more than 580 deepwater blocks in the Gulf of Mexico. 

Significantly, the Kaieteur Block lies in the same geological basin as the Stabroek Block, where total recoverable resources of more than 3.2 billion barrels of oil equivalent have been discovered to date. Hess has a 30 percent working interest in the Stabroek Block.