Westmount Energy Limited, the AIM-quoted oil and gas investing company focussed on high impact drilling outcomes in emerging basins, notes the announcenment today by Argos Resources Limited ("Argos") with respect to the completion of the acquisition by JHI Associates Inc. ("JHI") of North Falklands Basin Production Licence PL001. As previously announced by Argos, the consideration for the acquisition of operatorship and 100% working interest ("WI") in PL001 is 8,467,820 JHI Common Shares ("the Consideration Shares") and £303,500 in cash, with the Consideration Shares expected to represent approximately 9.3 per cent. of the enlarged share capital of JHI following completion of the transaction.
Production Licence PL001, which covers approximately 1,126 square kilometres, is located in the North Falklands Basin immediately to the west of the giant Sea Lion Discovery which has a currently anticipated Final Investment Decision, for a phased development, in 2024.
Following the completion of this transaction and the passing of resolutions at the Argos general meeting held on the 22nd September 2023, Argos has been placed into members voluntary liquidation and Argos shares, which are currently suspended, will be cancelled from Admission to trading on AIM with effect from 7am on 26 September 2023. Furthermore, as previously announced by Argos, having agreed with certain creditors to settle those liabilities using Consideration Shares, it is anticipated that approximately 7.9 million of the Consideration Shares will be available for distribution on a pro-rata basis to Argos' shareholders on the register at the relevant date.
JHI is a private, Ontario-registered, company established in 2014 and focused on oil exploration opportunities in the emerging Guyana-Suriname Basin. The company's main asset is a 17.5% WI in the Canje Block covering over 4,800 square kilometres, offshore Guyana. This block is located adjacent to and in the same geologic basin as the Stabroek Block which has delivered more than thirty substantial oil discoveries since 2015, with reported discovered recoverable resources of in excess of 11 billion oil-equivalent barrels to date.
The Canje Block is currently operated by an ExxonMobil subsidiary, Esso Exploration & Production Guyana Limited (35%), with TotalEnergies E&P Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%), and Mid-Atlantic Oil & Gas Inc. (12.5%) as partners.
Prior to the completion of the JHI-Argos transaction Westmount held a total of 5,651,270 shares in JHI, representing approximately 7.2% of the issued common shares in JHI as of 31st December 2021; Westmount also held 1,000,000 shares in Argos representing approximately 0.4% of the issued common shares in Argos as of 3rd March 2023. It is anticipated that approximately 33,600 of the Consideration Shares will be distributed to Westmount as a result of the company's shareholding in Argos at the relevant date.
The Company also announces that its nominated adviser and broker has changed its name from Cenkos Securities plc to Cavendish Securities plc following completion of a corporate merger.