Westmount Energy Limited said on Monday it noted the announcement by Ratio Petroleum Energy Limited over the weekend that the date for elective nomination of the second drill target on the Kaieteur block has been extended by seven months, to March 22, 2022. Announcements by Ratio Petroleum indicate that the original Kaieteur second well prospect nomination date was August 22, 2021, with any drilling consequent to this decision to commence within nine months of the nomination date.
Westmount Energy said the Kaieteur block partners agreed to this extension to facilitate continuing analysis by the operator, ExxonMobil, 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 (20o API 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 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). ExxonMobil is operator of the block with a 35% stake.
Westmount holds approximately 5.3% of the issued share capital of Cataleya Energy Corporation 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.