Corporate M&A

Westmount Energy Raises Stake in Guyana-Focused JHI Associates

By Mahati K L
September 11, 2020
a minute read
CNOOC Offshore Rig

Jersey-based Westmount Energy Ltd. has increased its stake in privately-held Guyana-focused E&P company JHI Associates Inc. to nearly 7%, through the subscription of 1,550,000 additional common shares in the company (representing approximately a 2% stake). Prior to this investment, Westmount held a 4.8% stake in JHI.

Under the terms of the transaction, Westmount will acquire an additional 1.55 million shares of JHI in exchange for the issuance of 18,290,000 Westmount shares, valued at £0.20 per share (based on Westmount’s closing share price on September 9th), amounting to an estimated transaction value of £3.7 million. The consideration shares issued to JHI have no par value and represent approximately 12.7% of Westmount’s enlarged issued share capital. Westmount completed the acquisition of 750,000 JHI shares on September 9th, and plans to complete the purchase of the remaining 800,000 shares within 7 days.

Toronto-based JHI is focused on frontier exploration in the Guyana-Suriname basin, and currently holds a 17.5% carried interest in the Canje block, offshore Guyana. The block covers an area of 4,800 sq. km and is located adjacent to and in the same geologic basin as the prolific Stabroek block, which has delivered twelve substantial oil discoveries since 2015 and is operated by Exxon Mobil Corp. The Canje block is also operated by Exxon with a 35% interest. French energy major TOTAL SA also holds a 35% interest in the block, with Mid-Atlantic Oil & Gas Inc. holding the remaining 12.5%.

AIM-listed Westmount Energy operates as an investment company and holds a portfolio of equity investments in international oil & gas companies, with a current focus on opportunities in the Guyana-Suriname basin through its investments in JHI, Ratio Petroleum Energy LP, and Eco (Atlantic) Oil & Gas Ltd.

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