Westmount Energy Limited (AIM:WTE, OTCQB:WMELF) has seen another discovery offshore Guyana, but like the two previous finds the Sapote-1 well also encountered non-commercial volumes.
The AIM-quoted oil and gas investor has a stake in the Exxon-operated well via its 7.2% shareholding in JHI Associates Inc, which is a minority partner with 17.5% of the Canje block.
Sapote-1 was drilled down to 6,758 metres by Exxon and it found non-commercial hydrocarbons in one of the well’s deeper exploration targets.
"Sapote-1 is the sixth well, offshore Guyana, that Westmount has participated in via our investee companies, since 2019. This portfolio of drilling outcomes has yielded 3 oil discoveries, but no standalone commercial success to date,” said Gerard Walsh, Westmount’s executive chair.
“While this outcome from the Westmount portfolio is below expectations the results to date provide encouragement and must be viewed in the context of initial 'large step-out' wells, in a frontier setting, evaluating giant stratigraphic prospects while seeking to establish the perimeter of the multiple play fairways both to the northeast and southwest of the prolific Stabroek Block.”
Walsh noted that the Canje joint venture group – which comprises Exxon, TotalEnergies, JHI and Mid-Atlantic Oil & Gas Inc – will now move to analyse and integrate the well data obtained in the 2021 drill programme at Canje to high-grade possible future targets on the block.
Significantly, Westmount noted that Exxon has already made an application to Guyana’s environmental authorities in respect of a 12-well drill programme on the block slated for 2022.
JHI has one remaining ‘cost carried’ well under a 2018 farm-out deal with Total.
Exxon is leading the oil and gas industry offshore Guyana where it has unearthed several billion barrels of resources in the Stabroek block which hosts the Liza field – which is yielding 120,000 bopd from its first phase development and is set to expand with new floating production facilities in 2022.