Westmount Energy upbeat on progress at investee JHI

Guyana-Suriname Basin-focussed oil and gas investment company Westmount Energy had been told by its investee company JHI Associates that the Jabillo-1 well on the Canje Block had been safely drilled in 2,903 meters of water by the Stena Carron drillship, it announced on Monday, to its planned target depth of 6,475 meters.

The AIM-traded firm said the well did not encounter commercial hydrocarbons.

It said the focus of the ExxonMobil operated Canje drilling campaign would now switch to the Sapote-1 well, which was located more than 100 kilometres to the southeast.

That well would be drilled in a new depositional setting, linked to the Berbice canyon system, and closer to Upper Cretaceous discoveries in the Stabroek Block and Suriname's Block 58.

“Sapote-1 is an independent multi-layer prospect, which will evaluate several Upper Cretaceous targets, and is potentially the largest prospect drilled on the Canje block to date,” the board said in its statement.

“Current guidance indicates that Sapote-1 will be spudded in mid-August using the Stena DrillMAX drillship, with results anticipated in mid-October.”

Westmount holds an indirect interest in the Canje Block as a result of its 7.2% interest in the issued share capital of JHI.

“Following a 2018 farm-out to Total and subsequent transactions, JHI is funded for the 2021 Canje drilling campaign, including the Sapote-1 well, and multiple additional wells.”

The Canje Block is currently operated by an ExxonMobil subsidiary, Esso Exploration & Production Guyana with a 35% share, with Total at 35%, JHI at 17.5%, and Mid-Atlantic Oil & Gas at 12.5% as partners.

At 1616 BST, shares in Westmount Energy were down 20.85% at 9.3p.