Kaieteur Block - Ratio Petroleum Update with Respect to the 2nd Well Prospect Nomination Date

Source: www.gulfoilandgas.com 3/22/2022, Location: South America

Westmount Energy Limited, notes the announcement by Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum") earlier today, that the date for elective nomination, by the operator, of the prospect target for the 2nd well on the Kaieteur Block has been extended to the 2nd October, 2023. The Kaieteur Block partners agreed to this extension to facilitate continuing geological and geophysical analysis by the operator and integration of recent and ongoing deep play drilling program results on adjacent blocks into the Kaieteur prospect nomination decision. All costs will be carried by the operator during this extension period1.

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 CPR2 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 Corporation 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.

Gulf Oil and Gas
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