Westmount Energy Limited (AIM:WTE, OTCQB:WMELF) has acknowledged the takeover of the PL001 North Fawklands licence by part-owned JHI Associates Inc from Argos Resources Ltd (LSE:ARG).
Following the latter’s fall into administration, JHI has taken on the 1,126 square-kilometre licence, which sits immediately west of the giant Sea Lion Discovery.
A final investment decision is expected in 2024, Westmount said in a statement, ahead of an anticipated phased development programme.
As of December 2021, Westmount held a 7.1% stake in JHI, equating to 5,651,270 shares.
The AIM-listed oil and gas investor also held 0.4% of Argos’s issued shares, with the holdings expected to be reimbursed through the issue of consideration shares.
JHI also holds a 17.5% interest in the Canje Block off the coast of Guyana, Westmount added, which is operated by ExxonMobil Corporation.
Shares in Westmount jumped 26% to 2.40p.