Westmount Energy Limited Purchase of common shares in Africa Oil Corp. (1784C)
June 09 2023 - 2:00AM
UK Regulatory
TIDMWTE
RNS Number : 1784C
Westmount Energy Limited
09 June 2023
9(th) June 2023
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Purchase of common shares in Africa Oil Corp.
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 announce that
it has purchased 300,000 common shares in Africa Oil Corp. ("AOC";
TSX: AOI.TO, Nasdaq Stockholm: AOI.ST). The shares have been
purchased on the open market at an aggregate cost (including
purchase costs) of GBP538,633, using Westmount's existing cash
resources. This purchase increases Westmount's indirect exposure to
anticipated exploration drilling on the Canje and Orinduik blocks,
offshore Guyana, from 2024 and in addition provides liquid exposure
to the scheduled 2023, up to 4 well, appraisal drilling and testing
program on the giant Venus discovery in the Orange Basin, offshore
Namibia.
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 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 March 31, 2023'
https://africaoilcorp.com/site/assets/files/1833/2023_africa_oil_corp_-_report_to_shareholders_march31-.pdf
. Other more recent and historical disclosures are available on its
website www.africaoilcorp.com .
Westmount's holding of 300,000 shares in AOC, represents
approximately 0.065% of the issued common shares in AOC as of
31(st) March 2023. At cost, Westmount's holding in AOC equates to
approximately 9.6% of the value of Westmount's gross assets as of
31st December 2022. Westmount reported a net loss for the year
ended 30th June 2022 of GBP7.4 million, whereas AOC reported a net
loss of USD $60.3 million for the year ended 31st December
2022.
This investment is consistent with Westmount's strategy of
seeking exposure to high impact drilling outcomes, in particular,
in the prolific Guyana-Suriname and Orange basins which the Board
considers to be major emerging hydrocarbon provinces. Westmount is
of the view that AOC offers a unique investment opportunity for its
exposure to the giant Venus light oil and associated gas discovery
offshore Namibia, as it is the only publicly-listed independent oil
and gas company with an effective economic interest (approximately
6.2%) in this field, which is understood to be the largest oil
discovery globally in 2022.
This investment in a liquid, publicly traded, entity complements
Westmount's existing exposure to a potential Guyanese drilling
program (Kaieteur/Canje/Orinduik blocks) from 2024, while in the
interim providing Westmount shareholders exposure to potentially
high impact, lower risk, appraisal drilling and testing outcomes on
the giant Venus discovery, offshore Namibia, with anticipated
newsflow throughout this 2023 appraisal program.
For further information, please contact:
Westmount Energy Limited www.westmountenergy.com
David King, Director Tel: +44 (0) 1534 823059
email: westmountenergy@stonehagefleming.com
Cenkos Securities plc ( Nomad and Broker) Tel: +44 (0) 20 7397 8900
Neil McDonald/Peter Lynch (Corporate Finance)
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