Africa Oil Corp. update

Westmount Energy Limited

08 February 2024

 

8 February 2024

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Namibian exploration and appraisal program - Africa Oil Corp update

·      Mangetti-1X encounters hydrocarbons at both objectives

·      Drilling of Venus-2A underway, the fourth appraisal well on the giant Venus discovery

·      Continuing aggressive exploration and appraisal program in 2024

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 this morning by its investee company Africa Oil Corp. ("AOC"; TSX: AOI.TO, Nasdaq Stockholm: AOI.ST) with respect to exploration and appraisal activities on Block 2913B, in the Orange Basin, offshore Namibia. The update highlights the prolific nature of the Orange Basin hydrocarbon system with hydrocarbons now demonstrated to be present at two separate stratigraphic levels within Block 2913B. Mangetti-1X, a dual objective exploration and appraisal well, encountered hydrocarbon-bearing intervals in the shallower Mangetti Fan prospect, opening a new play fairway, while also successfully intersecting and appraising the northern area of the deeper Venus discovery. Mangetti-1X has the potential to boost the existing recoverable resource base on Block 2913B and the joint venture partners are now considering the next steps in the evaluation program.       

The update also confirms that the drilling of Venus-2A, the fourth appraisal well on the giant Venus discovery, is underway using the Deepsea Mira rig. In addition, the acquisition of a 3D seismic program in the southern part of Block 2913B is progressing with a view to highgrading additional exploration targets for drilling.

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 September 30, 2023' https://africaoilcorp.com/site/assets/files/1856/2023-aoi-q3.pdf Other more recent and historical disclosures are available on its website www.africaoilcorp.com.

AOC currently has an effective interest of 6.2% in Blocks 2913B and 2912 as a result of its 31% shareholding in Impact Oil & Gas Limited¹. Westmount's holding of 300,000 shares in AOC, represents approximately 0.065% of the issued common shares in AOC as of 31^st January 2024. This investment provides liquid exposure to the ongoing testing program of the significant Venus light oil discovery on Block 2913B in addition to the  evaluation of other giant exploration targets on the block.

Gerard Walsh, Chairman of Westmount Energy Ltd. commented:

"Today's positive update by our investee AOC confirms our view that the Orange basin is a major emerging, prolific, hydrocarbon province which offers Westmount shareholders continuing exposure to high impact exploration and appraisal drilling outcomes. We also note the commentary provided yesterday at the TotalEnergies 2023 Results and 2024 Objectives presentations², with the operator of the giant Venus Discovery indicating that the appraisal program and development planning was now focussed on the optimisation of the location of the first Development FPSO with respect to reservoir sweet spots in terms of permeability and productivity. In addition, the operator signalled a continuing aggressive exploration and appraisal program in 2024, with a Namibian E&A budget of circa $300M, and with another potential exploration drilling target already identified to the south of Venus. So an exciting program of drilling and testing lies ahead and we look forward to further newsflow in this regard."

¹Upon completion of the transaction announced by AOC on the 10^th January 2024, AOC's effective interest in Blocks 2913B and 2912 will reduce to 2.95% and Impact Oil & Gas Limited will retain a 9.5% interest in Blocks 2912 and 2913B that is fully carried for all joint venture costs, with no cap, through to first commercial production.

https://africaoilcorp.com/news/africa-oil-announces-strategic-farmout-of-impacts-122899/

²https://totalenergies.com/sites/g/files/nytnzq121/files/documents/2024-02/TotalEnergies_2023_Results_and_2024_Objectives_presentation.pdf

For further information, please contact:

Westmount Energy Limited	www.westmountenergy.com
David King, Director	Tel: [phone] email: [e-mail]
Cavendish Capital Markets Limited (Nomad and Broker)
Neil McDonald/Peter Lynch (Corporate Finance)	Tel: [phone]

 

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