Westmount Energy Limited (LON:WTE) has highlighted the start of drilling operations at the Bulletwood-1 well, part of the Canje exploration project offshore Guyana.
The group said it fires the starting pistol on an exciting and potentially game-changing period for the small-cap oil investor.
Westmount indirectly holds an interest in ExxonMobil-operated Canje, via a 7.2% shareholding in JHI Associates Inc (which in turn has a 17.5% stake in the block).
As a result of JHI’s farm-out deal with Total, struck in 2018, the minority partner is ‘carried’ for its share of costs in up to four wells including Bulletwood-1.
READ: Westmount increases stake in JHI
The Bulletwood target is estimated at around 500mln barrels and is seen as a ‘lookalike’ of the Liza field, the large play-opening discovery in the neighbouring Stabroek block.
In 2015, Liza kicked off a purple patch of exploration which has seen success in 18 out of 20 exploration wells and led to a discovered inventory of 9bn barrels of oil equivalent.
Exxon is now expanding its exploration campaign to Canje.
"Bulletwood-1 is the first well in a multi-well, fully funded, drilling campaign being operated by ExxonMobil on the Canje Block over the next 6 months or so,” said Gerard Walsh,, Westmount chairman in a statement.
“This campaign will evaluate high impact Upper Cretaceous prospects in the proven Liza play fairway with, in some cases, additional deeper reservoir targets.
“It also provides Westmount shareholders exposure to a portfolio of drilling outcomes over a compressed timeframe. Success from some of the wells in this portfolio could result in transformational value changes for Westmount."
Exxon owns a 35% stake in the block alongside Total which also owns 35%, JHI with 17.5% and Mid-Atlantic Oil & Gas Inc which has 12.5%.