The Company is pleased to announce its Final Results for the year ended 30 June 2025, and hereby gives notice that the Annual General Meeting of Westmount Energy Limited will be held at Floor 4, Liberation House, Castle Street, St Helier, Jersey JE1 4HH, Channel Islands on 12 December 2025 at 11.00.
Copies of the Company's results, Notice of AGM and Proxy Form are available on the Company's website, www.westmountenergy.com from today.
CHAIRMAN'S REVIEW
2025 Highlights
· Production Licence PL001 North Falklands Basin - Sea Lion FID set to unlock the basin and provide a catalyst for further exploration; Tyche and Dinlas prospects - within the same stratigraphic interval as the Sea Lion discovery - high-graded on 3D seismic, in water depths <500m, each containing a potential 400 MMbbls recoverable
· Significant value re-alignment of AIM listed Falkland Islands explorers over the period; Westmount holds an effective 6.24% economic interest in PL001
· Canje Block, Guyana operator secured a 1-year extension to March 2026; specific guidance on drilling and further licence extension plans not yet available
· Kaieteur Block -Farm-down process continues, spearheaded by operator Ratio Petroleum; Stabroek operator, ExxonMobil, returns to appraisal drilling at Ranger Discovery which is proximal to the Tanager-1 Discovery on the Kaieteur Block
· Ratio Energy Partnership Ltd. merger discussions with Ratio Petroleum announced in January 2025 but subsequently suspended until year end 2025
· Orinduik Block - Eco remains engaged in active farmout process while also evaluating the Jethro and Joe heavy oil discoveries to determine the appropriate appraisal approach; ExxonMobil announces FID re the adjacent Hammerhead Discovery, a 150,000 BOPD development targeting first oil in 2029
· Block 3B/4B, South Africa - Eco and Africa Oil Corp 'interest swap transaction' plus joint farm-down to TotalEnergies and QatarEnergy completed in advance of South African, Orange Basin, drilling campaign
· Company had cash of £0.281M and listed marketable securities of £0.153M at Year End, 30 June 2025; no debt
The global energy system continues to be shaped by competing forces as countries around the world seek to adapt to changing political, technological and environmental priorities. Against a backdrop of geopolitical tensions, conflicts in Ukraine and the Middle East, international sanctions plus tariff and trade uncertainties, electricity demand growth from data centres and AI businesses - governments have been forced to focus on maintaining secure and affordable energy supplies, in some cases at the expense of net-zero aspirations. Global primary energy demand is estimated to have increased by 2% in 2024 - higher than the average increase for the past ten years1 - underpinned by continued steady growth in oil and gas demand - notwithstanding the massive investment and rapid growth in renewable energies such as wind and solar during recent years.
The general consensus is that oil and natural gas resources will be needed for many decades to come with some forecasts indicating that oil and natural gas will make up more than half of the world's energy supply in 2050. Oil demand is anticipated to stabilize after 2030, remaining above 100 million barrels per day through 2050. However, demand for natural gas is forecast to rise by more than 20% - driven by higher electricity demand in developing countries2. Since the 2014 oil price crash upstream capital available for oil and gas investment has declined abruptly from USD$779 billion per annum, with investment in 2025 estimated to be around USD$570 billion3. Oil and gas production is a depletion business with nearly 90% of this annual investment in recent years dedicated to offsetting production declines rather than to meeting demand growth. This implies that modest drops in annual upstream investment can choke off supply growth. Furthermore, the IEA indicates that oil and gas field depletion may be progressing faster than previously believed which suggests that the industry will need to invest more on exploration just to sustain the current rate of production.
While the longer-term outlook for the E&P sector continues to be positive the near-term picture with respect to supply/demand balance is uncertain - with Brent prices retreating in the last year from a peak above $80/bbl to below $65/bbl in early November 2025. A combination of non-OPEC+ supply growth and continued unwinding of OPEC+ voluntary cuts point to abundant supply. Simultaneously, with crude inventory building in China and opportunistic replenishment of the US SPR underway, economic uncertainty due to tariffs and realignment of trade relationships is likely to impact economic growth particularly in SE Asia4 and hence near-term oil demand.
Nevertheless, exploration for conventional oil and gas resources is likely to remain a core focus for the energy industry through this rebalancing period. Disciplined capital allocation while building diversification and optionality into prospect portfolios is a strategy being deployed by the bigger companies in the hunt for advantaged barrels that can meet their stringent financial return thresholds and ESG investment metrics. Westmount's investees remain well positioned with a diversified portfolio of exploration assets in proven, prolific, hydrocarbon provinces (North Falkland, Guyana-Suriname and Orange Basins) which should continue to attract a disproportionate share of global exploration capital in the coming years.
North Falkland Basin (Falkland Islands)
After a long journey, the North Falkland Basin is on the verge of becoming a significant hydrocarbon producer with FID on Phase 1 of the 2010 Sea Lion Discovery expected in Q4 2025. A 'Development Pending' Gross 2C Resource of over 700 MMbbls indicates that Sea Lion is indeed a giant oil field. Located in water depths of circa 400 metres, with benign met-ocean conditions, and with the current phased development plan offering 'life of field' breakeven costs of $25/bbl, it points to robust economic rewards for stakeholders under a range of oil price scenarios. In addition, other significant discoveries within the basin - such as the Johnson (14/5-1) gas-condensate discovery made in 1998, to the north of the Sea Lion Complex, and the 2015-2016 Isobel-Elaine (14/20-1 and 14/20-2) oil discovery, to the south of Sea Lion, - suggest the North Falkland Basin is a prolific hydrocarbon province with the potential for the discovery of significant additional resources. The continued positive statements from Navitas with regards to the Sea Lion development and the recent equity fundraisings by both Navitas and Rockhopper indicate that the project is on track for FID prior to year end. Achievement of this milestone should unlock the North Falkland Basin and is likely to be a significant catalyst for further exploration in the area.
Investee Interests - offshore Falkland Islands
Production Licence PL001 (JHI Associates Inc. - 100%)
On 25 September 2023, Argos Resources Limited ("Argos") announced the completion of a transaction with JHI which resulted in the acquisition of operatorship and 100% working interest in North Falklands Basin Production Licence PL001 by JHI in return for a consideration of 8,467,820 JHI Common Shares ("the Consideration Shares") and £303,500 in cash. It was stated that these Consideration Shares would represent approximately 9.3 per cent of the enlarged share capital of JHI following completion of the transaction.
In November 2024 JHI and the Falkland Islands Government ("FIG") agreed upon a two-year extension to the second exploration period of the PL001 Production Licence, until 31 December 2026. At that time, JHI can apply to enter the third exploration period of ten years, running from 1 January 2027 to 31 January 2036 with a firm commitment to drill one exploration well. Fiscal terms are benign with 9% royalty and 26% corporation tax.
PL001 is immediately adjacent to the west of Production Licence PL032 containing the Navitas Petroleum/Rockhopper Sea Lion development. PL001 is located in modest water depths (<500m) and is fully covered by 3D seismic. JHI's internal estimates indicate a prospect inventory defined on 3D seismic containing an aggregate 3.1bn bbls of prospective recoverable resources with an upside of more than 10 bn bbls5. So far, two oil prospects, Tyche and Dinlas, have been high-graded within the same stratigraphic interval as the Sea Lion discovery - each containing a potential 400 MMbbls recoverable5. Westmount's shareholding in JHI equates to an effective 6.24% economic interest in these prospects and the PL001 licence.
Guyana-Suriname Basin (offshore Guyana)
During 2025 Guyana reached the 10-year anniversary of the drilling of the Liza-1 well its first offshore oil discovery. In that time Guyana has been transformed from a frontier deepwater exploration opportunity into the industry's largest new oil province - with circa 11 billion barrels of oil equivalent discovered recoverable resource - and the world's fastest growing economy powered by a total of more than USD$60bn in funds committed to the seven approved offshore projects to date. Against a backdrop of some intermittent friction with respect to the border with Venezuela, Guyana has become a significant source of non-OPEC production growth and is about to become the largest oil producer per capita, globally, later this year. By the end of H1 2025 the three projects already on stream - Liza Phase 1, Liza Phase 2 and Payara - were producing roughly 650k BOPD in aggregate, significantly above the gross nameplate capacity of the three installed FPSOs. In August 2025 ExxonMobil announced the start-up of production at Yellowtail, the largest development to date with an initial annual average production of 250k BOPD - bringing total installed capacity offshore Guyana to over 900k BOPD. In addition, with the Uaru (250k BOPD, start-up 2026), Whiptail (250k BOPD, start-up late 2027) and the recently sanctioned Hammerhead (150k BOPD, start-up 2029) projects progressing through development, Guyana remains on track to have a total production capacity of 1.7 BOEPD from eight developments by 20306.
While drilling of development wells for sanctioned projects continues to dominate, a reduction in the drillship fleet from six to five ships for much of the period points to a reduced level of exploration and appraisal drilling activity throughout 2024 and into 2025. With drilling exclusively focused on the Stabroek Block, fewer exploration wells were reported during the period with Bluefin-1 (60m hydrocarbon bearing - the sole discovery during 2024), and Hamlet-1 (results not reported) both drilled in the southeast of the block. Some hub class prospects were also evaluated during this period, in a relatively undrilled area to the northwest of the initial Liza discovery, with the drilling of Trumpetfish-1 (unsuccessful) and Redmouth-1, Redmouth-1A (results not reported). In contrast, significant appraisal drilling/testing operations were reported during the period at Lau Lau-2, Barreleye-2, Lukanani-2, Haimara-3, -4 - with the latter wells targeting the more gas rich resources in the southeast of the block. In September 2025 it was reported that the Stabroek partners had returned to the 2018 Ranger Discovery in the northwest of the block with the spudding of a 2nd appraisal well, Ranger-3. The Ranger Discovery is located in >2,700m water depth and is located proximal to the 2020 Tanager-1 Discovery, which straddles the Stabroek/Kaieteur block boundary. Separately, in June 2024, it was reported that the government of Guyana had selected a U.S. startup, Fulcrum LNG, in partnership with ExxonMobil, to assist with monetization of gas resources which could be produced on a large scale, for export7.
On a smaller scale, Guyana's first Gas to Energy project is at an advanced stage. On 9 October 2024, it was reported that a pipeline connecting the Liza Phase 1 and Phase 2 FPSOs with onshore integrated gas processing facilities (currently under construction at Wales, West Bank Demerara) had been mechanically completed and pressure tested8. The pipeline has a capacity to transport circa 130 million cubic feet of gas per day (mmcf/d) but will initially deliver approximately 50 mmcf/d to feed the 300MW power plant and NGL facility. As of September 2025, construction of the power plant is reported to be 76% completed9. The project, which is expected to help lower electricity costs and reduce emissions, once completed in 2026, by reducing dependence on imported heavy fuel oil. The project will be the first to take advantage of associated gas currently produced with the oil on the Stabroek Block. Associated gas from the Hammerhead development is also expected to be transferred to Guyana's Gas-to-Energy (GtE) pipeline for delivery to shore. The Wales construction project is now also expected to include a natural gas liquids storage and marine offloading facility, with associated pipelines. The government has launched a two-part procurement process to find firms to construct and manage the NGL storage/offloading facility, which will receive liquids from the separation plant that is currently under construction. The facility is planned to handle liquids at a rate of about 4,200 barrels per day (b/d) initially, with room to scale up by an additional 5,900 b/d under a second phase10.
In July 2023 Hess reported that the Stabroek partners had secured a one-year extension to the Stabroek exploration licence, from October 2026 to October 2027, as a result of force majeure due to the COVID-19 pandemic. In July 2025, it was reported that the Stabroek partners had relinquished 2,534 square kilometres of the Stabroek block - circa 9% of the block's 26,800-square-kilometer area11.
On 23 October 2023 Chevron Corporation announced that it had entered into a definitive agreement with Hess Corporation to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, with a total enterprise value of the transaction, including debt, of $60 billion. The transaction was originally expected to close in H1 2024. However, on 6 March 2024, it was reported that ExxonMobil had filed for arbitration, with the International Chamber of Commerce (ICC) in Paris, to assert it's right of first refusal under the Stabroek JOA. The protracted arbitration proceedings were resolved on 18 July 2025, with the ICC finding in favour of Chevron thereby allowing them to immediately complete the acquisition of Hess Corporation.
In December 2022, the Guyanese government launched a Licensing Round for 14 offshore blocks (3 deepwater and 11 shallow water blocks) under revised fiscal and contractual terms including biddable signature bonus with a minimum threshold of USD $20M and $10M for deepwater and shallow water blocks, respectively. On 15 September 2023, it was announced that bids had been received for eight of the fourteen blocks on offer, with a total of 14 bids received from 6 groups, including the ExxonMobil/Hess/CNOOC and the TotalEnergies/QatarEnergy/Petronas groups. Contract negotiations are continuing but as of end September 2025 no new licences had been issued12. However, on 11 November 2025, TotalEnergies announced that it had signed a production sharing contract for shallow water Block S4 with an initial work program consisting 2,000 km2 3D seismic acquisition. TotalEnergies (40%) will operate the block, with QatarEnergy (35%) and Petronas (25%) as partners.
In the Surinamese sector exploration, appraisal and development activities have continued through this period. On 1 October 2024, Suriname's first offshore development was confirmed when the Block 58 operator, TotalEnergies, announced FID with respect to the 'GranMorgu' complex containing the Sapkara South and Krabdagu low-GOR oil discoveries, with First Oil scheduled for mid-2028. This development brings together a combined 750 million barrels of recoverable resources using an all-electric, 220,000 bopd FPSO, with 4-year plateau and full gas reinjection - meeting the operator's requirements in terms of unit cost (CAPEX + OPEX $19/boe) and emissions intensity (<16 Kg/boe CO2)13. The GranMorgu FPSO is designed to accommodate future tie-back opportunities that would extend its production plateau. One such tie-back opportunity is the nearby Baja-1 oil discovery on Block 53, operated by APA. In June 2025, TotalEnergies announced that it had acquired a 25% interest in Block 53 from Moeve (formerly CEPSA) with a view to using these additional resources to extend the production plateau at GranMorgu. Separately, Staatsolie announced in May 2025 that it had concluded a USD$1.6bn bank loan with a group of 18 banks and financial institutions to part fund its 20% participation in the GranMorgu project.
Elsewhere, offshore Suriname, Petronas has been progressing the potential for an integrated oil and gas development in the area of Block 52, notwithstanding ExxonMobil's exit from a 50% non-operating position in the block in November 2024. On 16 May 2024, Petronas announced a third discovery on Block 52, with Fusaea-1 encountering several oil and gas-bearing sandstone reservoirs in the Campanian interval. Subsequently, on 8 August 2024, a successful appraisal well at Sloanea-2 was reported, with Petronas flagging the potential for a standalone Floating Liquified Natural Gas (FLNG) project at the field. In May 2025 Staatsolie reported that TotalEnergies would be using the Stena DrillMAX to spud the Macaw-1 exploration well on Block 64 - the first of five exploration wells scheduled to be drilled offshore Suriname in 2025. Macaw-1 was due to spud around 19 May and scheduled to take 80 days to drill - no results have been reported to date. The other exploration wells scheduled for drilling or underway in 2025 include Caiman-1 and Kiskadee-1 (Petronas, Block 52 - as part of a three well program which commenced in July, using the Noble Developer semi-submersible), Korikori-1 (Chevron, Block 5 - expected to spud before end October, using the Noble Regina Allen jack-up) and Araku Deep-1 (Shell, Block 65 - pending the return of the Stena DrillMAX drillship to offshore Suriname).
On 13 September 2024, Staatsolie announced the signature of two new PSCs (Blocks 14 & 15) with Petrochina, a subsidiary of CNPC. In June 2025 Petronas reported that it had signed a PSC for Block 66 which includes a firm commitment to drill two exploration wells, targeting drill-ready prospects that offer significant resource potential and synergies with their existing operations in Block 52. In August 2025 Staatsolie announced that it will launch an 'Open-Door Offering' in November 2025, for open acreage offshore Suriname. On 5 November 2025 Staatsolie also reported that it had signed new PSCs for Blocks 9 & 10 - with participants in Block 9 to be Petronas (30%, operator), Chevron (20%), QatarEnergy (20%), Paradise Oil Co./POC (30%) - and participants in Block 10 to be Chevron (30%, operator), Petronas (30%), QatarEnergy (30%) and POC (10%).
In summary, the Guyana-Suriname basin remains a prolific hydrocarbon province with potential for significant undiscovered resources in multiple plays. However, 'shifting sands' have seen a more dynamic exploration sector emerge in the Suriname sector with five exploration wells scheduled for drilling or underway in 2025 vs one exploration well in the Guyanese sector (none outside of the Stabroek Block). Macro factors such as operator dominance and priorities, prolonged arbitration proceedings and the electoral cycle together with differing prospect economic thresholds have contributed to this asymmetry. Substantial drill-ready prospects have been high-graded on the Kaieteur, Canje and Orinduik blocks and remain to be evaluated by the drill-bit. However, a number of challenges with respect to JV alignment/composition, licence extensions, environmental permitting and financing will need to be overcome to progress to the drilling phase.
Investee Interests - offshore Guyana
Kaieteur Block (Cataleya Energy Corp. - 50%; Ratio Petroleum - 50%)
The southern portion of the Kaieteur Block is covered by a 5,750km2 3D seismic survey, which was acquired in 2017/18 and has provided the foundation for maturing a significant prospect inventory on the block. A single prospect has been drilled to date which resulted in a sub-commercial oil discovery. The ExxonMobil operated Tanager-1 well, which was drilled in H2 2020, encountered 16 metres of net oil pay (20oAPI oil) in high-quality sandstone reservoirs of Maastrichtian age with a volumetric 'Best Estimate' Unrisked Gross (2C) Contingent Oil Resource of 65.3 MMBBLs (Low to High Estimates 17.7 MMBBLs to 131 MMBBLs) - Netherland, Sewell & Associates Inc. ("NSAI") published CPR (February 14, 2021). However, this discovery is currently considered to be non-commercial as a standalone development.
Subsequent to the Tanager-1 discovery, on May 24, 2021, it was announced that Hess Corporation ("Hess") had increased its working interest ("WI") in the Kaieteur Block, offshore Guyana, from 15% to 20% via the farm-down of a 5% WI by Cataleya Energy Limited ("CEL"). However, in spite of a number of subsequent postponements, the operator ExxonMobil decided not to exercise its option to drill a second well on the block.
On 27 September 2023, it was announced by Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum"), that both ExxonMobil and Hess had elected to withdraw from the Kaieteur Block and return their participating interests to the original Kaieteur Licence holders, Ratio Guyana Limited ("RGL") and Cataleya Energy Limited ("CEL"). The process of reassigning the participating interests is ongoing, with RGL and CEL each retaining a 50% participating interest, and RGL operating the block. It was also announced that under the terms of the Kaieteur Petroleum Agreement, upon submission of an application to enter the second extension period, and upon the granting of a one year 'Covid extension' the participating interests on the block will have until February 2026 to commit to drilling a well. In this context, it is noted, that Ratio Petroleum is actively seeking a farm-down of participating interests with a view to bringing a new deepwater operator to the block.
In parallel, on 29 September 2024, Ratio Petroleum announced that it had received a buy-out offer form Ratio Energy Partnership Ltd. (already a significant shareholder in Ratio Petroleum) at 0.35NIS per share unit, subject to shareholder approval. Ratio Energy Partnership Ltd. is a well-capitalised TASE listed company, with a 15% interest in the giant, producing, Leviathan Gas Field, offshore Israel and a current market capitalisation in excess of USD $800M. Subsequently, on 12 January 2025, Ratio Petroleum indicated that, in lieu of the buy-out offer, it was considering a merger proposal from Ratio Energy and on 11 August 2025 Ratio Petroleum announced the temporary suspension of this merger review until the end of the year.
As of 30 June 2025, the Kaieteur Block is de facto operated by RGL (50% and operator) with CEL (50%) as partner. As of 30 June 2025, Westmount retains a holding of approximately 4.1% of the issued share capital of Cataleya Energy Corporation ("CEC") the parent company of CEL and circa 0.04% of the issued share capital of Ratio Petroleum Energy Limited Partnership ("Ratio Petroleum") the ultimate holding entity with respect to RGL.
Canje Block (JHI Associates Inc. - 17.5%)
In 2016, ExxonMobil, as operator, acquired in excess of 6,100 km2 of 3D seismic covering the entire Canje Block. Subsequent processing and interpretation of this dataset was used to define a substantial prospect inventory on the block with three prospects (Bulletwood-1, Jabillo-1, and Sapote-1) high-graded for drilling in the initial drilling campaign in 2021. All three wells were targeting Late Cretaceous basin floor fans and channel complexes. Although the drilling confirmed the presence of the Guyana-Suriname petroleum system, including the presence of some quality reservoirs at all 3 locations, no commercial hydrocarbons were encountered.
Subsequent to the completion of this first phase of drilling on block the focus of the Canje JV partners has been on the analysis and assimilation of the 2021 drilling results and data gathering program, the reprocessing and re-interpretation of the 3D seismic data, and the high-grading of the Cretaceous prospect inventory including the prospects in the deeper emerging Santonian-Cenomanian plays.
On 11 September 2023, the operator filed a Cumulative Impact Assessment ("CIA") for the Canje Block with the EPA. This CIA report indicated that exploration drilling on the Canje Block could potentially recommence from 2024, though this guideline has not been met. In December 2024 JHI and the Canje JV partners signed a one-year extension to the Canje Petroleum Agreement, extending the exploration period by one year, ending on 4 March 2026. In addition, as required under the Petroleum Agreement, 20% of the original Canje area was relinquished reducing the block area to 3,534 square kilometres.
Westmount holds an indirect interest in the Canje Block as a result of its circa 6.2% interest (see Table 1) in the issued share capital of JHI Associates Inc. ("JHI"), as of 30 June 2025. The company also holds an additional indirect interest in the Canje Block as a result of its shareholding in Eco (Atlantic) Oil and Gas Ltd. ("EOG") and following the investments in JHI Associates Inc. ("JHI") announced by EOG on 28 June 2021 and 19 January 2022.
The most recent published financial information with respect to JHI indicated it had circa USD$19.7 M in cash and cash equivalents as of 31 December 202114.
The Canje Block is currently operated by an ExxonMobil subsidiary, Esso Exploration & Production Guyana Limited (35%), with TotalEnergies E&P Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%) and Mid-Atlantic Oil & Gas Inc. (12.5%) as partners.
Orinduik Block (Eco Atlantic Oil and Gas Ltd. - 100%)
In 2017 Tullow Oil, the then operator of the Orinduik Block, acquired 2,500 km2 of 3D seismic data covering the entire block. In 2019 the initial drilling campaign on the block focused on the shallower Tertiary reservoirs and resulted in two heavy oil discoveries, Jethro and Joe which are currently considered to be non-commercial. As of 31 December 2022, the gross 2C resource attributable to Tullow's then 60% operated interest amounted to 47.7MMBBLs. Throughout 2022 and 2023 the focus of the Orinduik Block JV partners continued to be on the analysis and assimilation of the 2019/20 drilling results and data gathering program, the reprocessing and re-interpretation of the 3D seismic data, and the high-grading of the deeper Cretaceous light oil prospect inventory with a view to target selection for the next drilling campaign on the block. An EOG commissioned CPR by WSP, dated 20 March, 2022, indicates an aggregate Unrisked Prospective Resource (Best Estimate) of 3,386MMBBLs in 11 Cretaceous prospects. Nevertheless, progress towards drilling on the block during this period remained stymied due to the diverging strategies of the JV partners.
On 10 August 2023, EOG announced that it had signed a Sale Purchase Agreement ("SPA") pursuant to which its wholly owned subsidiary, Eco Guyana Oil and Gas (Barbados) Limited ("Eco Guyana"), would acquire a 60% Operated Interest in the Orinduik Block, offshore Guyana, through the acquisition of Tullow Guyana B.V. ("TGBV"), a wholly owned subsidiary of Tullow Oil Plc. ("Tullow") in exchange for an initial payment of USD$700,000 cash and a series of contingent payments based upon a commercial discovery outcome and subsequent success case development milestones.
Following completion of this transaction, on 21 November 2023, EOG became operator of the block with an aggregate 75% WI held via its wholly owned subsidiaries Eco Orinduik B.V. (60%) and Eco (Atlantic) Guyana Inc (15%). Subsequently, at year end, TOQAP Guyana B.V relinquished its 25% WI and EOG became the sole interest holder in the Orinduik Block with 100% WI.
On January 22, 2024, EOG gave notice to the Minister of Natural Resources of the Cooperative Republic of Guyana to enter the Second Phase of the Second Renewable Period of the Orinduik License which under the Petroleum Agreement contains a commitment to drill a well to the Cretaceous by January 2026.
Subsequent to assuming operatorship of Orinduik EOG has revitalised farm-down efforts with a view to attracting partners to drill a stacked-pay target in the more prolific Cretaceous light oil play, which remains unexplored on the Orinduik Block. In June 2025 EOG reported that it remains engaged in an active farmout process for the Orinduik Block while also evaluating the Jethro and Joe heavy oil discoveries to determine the appropriate appraisal approach. These endeavours may have been potentially bolstered by the September 2025 announcement by Stabroek operator, ExxonMobil, that the neighbouring Hammerhead Discovery had achieved FID with first oil projected to be in 2028. Hammerhead, which contains heavier 20-25oAPI crude oil, was discovered in 2018 with the final appraisal well, Hammerhead-4, drilled proximal to the Orinduik block boundary, in September 2023.
EOG reported its cash and cash equivalents to be USD$3.6M at 30 June 2025 and is also due to receive circa USD$11.5M as a result of milestone payments due under various Block 3B/4B (South Africa) farm-down transactions.
Orange Basin (offshore Namibia and South Africa)
Three years post the initial play opening discoveries at Graff-1x (Shell) and Venus-1x (TotalEnergies) exploration and appraisal activity has continued to be focused in the Namibian sector of the Orange Basin. With the completed drill count since early 2022 now at eighteen exploration wells and six appraisal wells this campaign has yielded twelve discoveries and a NAMCOR estimate of +21 Bn boe in-place resources discovered to date15. In addition, two of these discoveries - the TotalEnergies operated Venus Discovery on Block 2913B (PEL56) and the Galp operated Mopane complex on Block 2813B (PEL83) - are progressing towards FPSO development, in the context of discussions with the government re licence conditions and gas disposal challenges and in the case of Mopane, farm-down discussions attempting to attract a new development partner. In contrast, new Orange Basin drilling activity has yet to occur on the South African side as operators including Shell and TotalEnergies grapple with environmental permitting and associated legal challenges - notwithstanding the presence of a substantial drill-ready prospect inventory including Volstruis (Deep Water Orange Basin Block) and Nyala (Block 3B/4B).
During the period two unsuccessful exploration wells were completed, back-to-back, by the operator TotalEnergies on Block 2913B using the DeepSea Mira semi-submersible rig. Tamboti-1x which was spudded on 20 October 2024, encountered 85m of net reservoir in lower quality Upper Cretaceous sandstones containing black oil which was drill-stem tested. On 28 April 2025, it was reported that the Marula-1x had been drilled to TD without encountering hydrocarbons in the primary Albian reservoir target. With respect to Block 2813B, after reporting initial discovery (Mopane-1x, tested at 14kBOEPD) and successful appraisal (Mopane-2x) in H1 2024 Galp Energia proceeded to drill two further appraisal wells on the Mopane complex, using the Santorini Drillship, in Q4 2024. Mopane-1A confirmed the extension to the south of the main AVO-1 reservoir, while Mopane-2A confirmed an extension of the AVO-3 reservoir and discovered AVO-4, a new light-oil bearing reservoir. No hydrocarbon-water contacts were found in any of these reservoirs and initial analysis indicated good porosities and permeabilities, high pressures and low fluid viscosity characteristics, with minimum CO2 and no H2S concentrations. The drillship then moved to Mopane-3x an 18km step-out to the southeast from the Mopane-1x discovery well. On 25 February 2025 it was confirmed that the well had been successfully drilled, cored and logged, encountering stacked high-quality sandstone reservoirs with significant columns of light oil and gas-condensate across the AVO-10 reservoir plus the presence of light oil columns in the AVO-13 reservoir and a deeper sand.
On 16 December 2024, it was announced that Qatar Energy had farmed into Block 2813B (PEL90) prior to the spudding of the first well on the block. On 15 January 2025, it was reported that Chevron had drilled a dry hole, at Kapana-1x, in the southeast corner of the block using the DeepSea Bollsta semi-submersible rig. On 17 March 2025, Pancontinental reported that it had received notification from Woodside Energy that Woodside had elected not to exercise its option to farm-in to Blocks 2713A & 2713B (PEL 87). Subsequent to the Azule Energy farm-in to Block 2914A (PEL85) in May 2024, Rhino Resources spudded its first well on this block, Sagittarius-1x, in December 2024 using the Noble Venturer drillship - reaching TD on 6 February 2025. It was reported that the well encountered a hydrocarbon bearing reservoir in the Upper Cretaceous, with no observed water contact, and with fluid and reservoir properties to be confirmed by laboratory analysis. The drillship then moved to spud Capricornus-1x reaching TD on 2 April 2025. This well encountered 38m of net pay in a high quality, light oil bearing, Lower Cretaceous reservoir target with no observed hydrocarbon-water contact. A subsequent production test achieved a surface-constrained flow rate in excess of 11,000 stb/d on a 40/64" choke, recovering light ~37° API oil with limited associated gas, less than 2% CO2 and no hydrogen sulphide. On 31 July 2025, Rhino Resources announced the spudding of a third well, Volans-1x, using the Deepsea Mira rig. This well, which reached TD on 30 August 2025, encountered 26m of net pay in a rich gas-condensate bearing, Upper Cretaceous, reservoir with no observed hydrocarbon-water contact. The reservoir has excellent quality petrophysical properties and two fluid samples taken from the top and the base of the reservoir indicate the presence of a high liquid-yield gas condensate (CGR >140 bbl/mmscf) and a liquid density of around 40° API gravity. Subsequently, Rhino Resources reported that the company is planning to develop a fast-track production hub centred on these discoveries - targeting FID in late 2026/early 2027 and first oil in 2030. On 18 September 2025 it was announced that the Deepsea Mira rig had moved to spud the Kharas-1x well for BW Energy in the northwest of the Kudu license. On 31 October 2025 BW Energy reported that the well had reached total depth with several intervals showing indications of hydrocarbon presence and reservoir potential and with the K1 interval indicating the presence of wet gas. Subsequent wireline operations would assess reservoir quality, fluid type, and pressure characteristics and guide decisions with respect to future appraisal strategy.
All the evidence suggests that the prolific Orange Basin petroleum system, with multiple plays and deepwater reservoir targets, extends from the Namibian sector south into the South African sector. In addition, a substantial prospect inventory has already been defined on 3D seismic in the South African sector suggesting that the Orange Basin is still in the early part of the creaming curve with the potential for the discovery of additional large-scale resources.
Investee Interests - offshore South Africa
Block 3B/4B (Eco Atlantic Oil and Gas Ltd. - 5.25% 'fully carried')
Westmount previously held indirect interests in Block 3B/4B via its shareholdings in Africa Oil Corp ("AOC")/subsequently Meren Energy Inc. ("MER") and EOG. Following the disposal of its holdings in MER reported on 10 June 2025, Westmount's remaining interest in Block 3B/4B is held via its stake in EOG.
Prior work undertaken on Block 3B/4B, including the reprocessing of 2,200 km2 of 3D seismic and an independent review of Block 3B/4B prospective resources, undertaken by RISC Advisory (UK) Limited ("RISC"). The RISC analysis of the licence identified a total Unrisked Gross P50 Prospective Resource of approximately 4 billion barrels of oil equivalent ("BOE") in 24 prospects, with individual prospect probabilities of success ranging from 11% to 39%.
Subsequent to a Letter of Intent announced by EOG on 11 July 2023 and the entry into an Assignment and Transfer Agreement on 14 July 2023, EOG agreed to farm out a 6.25% Participating Interest in Block 3B/4B, offshore South Africa to AOC for up to US$10.5 million in cash, payable via a series of contingent milestone payments. Upon completion of this transaction, on 22 January 2024, the Block 3B/4B Licence holders were as follows: Africa Oil SA Corp a wholly owned subsidiary of AOC (26.25%, operator), Azinam Limited a wholly owned subsidiary of EOG (20%) and Ricocure (Proprietary) Limited (53.75%).
On 6 March 2024, EOG announced a further farm-down of a 13.75% participating interest in Block 3B/4B [as part of an aggregate 57% farm down transaction along with its JV Partners Africa Oil SA Corp. ("AOC") and Ricocure (Proprietary) Limited ("Ricocure")] to TotalEnergies EP South Africa B.V., who will become Operator ("TotalEnergies") and QatarEnergy International E&P LLC ("QatarEnergy"). EOG reported the value of this transaction to EOG as up to USD$32.1M - including 'loan carry' of EOG's residual 6.25% interest on up to two wells, contingent cash milestone payments from farminees and payments due to EOG from AOC and Ricocure under prior agreements. Completion of this transaction was reported on 28 August 2024 with the revised JV interests as follows: TotalEnergies (operator) 33%, QatarEnergy 24%, AOC 17%, EOG 6.25% and Ricocure 19.75%.
Separately, on 29 July 2024, EOG announced that it had entered an Assignment and Share Cancellation Agreement with AOC whereby EOG would sell a 1% interest in Block 3B/4B to AOC in exchange for cancellation of all of AOC's shares and warrants in EOG (worth C$ 11.5m). AOC currently holds, in aggregate, 54,941,744 Common Shares and 4,864,865 Warrants in EOG which, assuming conversion of the Warrants, would equal 16.16% on a diluted basis (c.15% non-diluted) of the total outstanding common shares of EOG. On 13 January 2025 EOG announced the completion of this transaction with EOG having a circa 15% reduction in its issued share capital, while retaining a 5.25% 'carried' interest in Block 3B/4B.
EOG had previously reported the submission, in March 2023, of an Environmental Authorisation application for drilling of up to 2 wells on prospects defined on 3D seismic in a high-graded area in the north of Block 3B/4B. The EIA was reported to be approved by the Department of Mineral Resources and Energy in early October 202416.
Block 1 (Eco Atlantic Oil and Gas Ltd. - 75% and operator)
Block 1 is located immediately south of the Namibia-South African maritime boundary and extends, from shoreline out to 1,000 metre water depth, covering an area of 19,929km². Subsequent to a farm-in agreement with Tosaco Energy (Proprietary) Ltd., announced on 5 June 2024, EOG reported on 4 June 2025 that it had secured the transfer of a 75% Working Interest and operatorship with respect to Block 1. The consideration for this transaction was a series of staged cash payments totalling USD$750k and a carry of the remaining 25% Interest through the Budget and Work Program for the first three years up to an agreed sum of USD$2.3 million of a total work program.
EOG has already purchased and is analysing the existing, high-quality legacy dataset, including extensive 2D seismic datasets, 3,500 km2 of 3D seismic and well data with respect to the three exploration wells previously drilled on the block. These wells include the Soekor AF-1 gas discovery, which tested gas at 32.4 MMscfd, and Soekor AE-1, which encountered oil and gas shows - providing clear evidence of an active petroleum system in the area. The block is adjacent to a number of recent discoveries in the Namibian sector of the Orange Basin - such as the Graff, La Rona, Lesedi, Enigma and Jonker discoveries made by Shell and the Capricornus-1x light oil discovery made by Rhino Resources.
EOG anticipates launching a formal farm-out process in respect of its interest in Block 1 in August 2025.
Investment portfolio summary
As of 30 June 2025, Westmount had a cash balance of £0.281M, listed marketable securities of £0.153M, and is debt free.
On 10 June 2025 Westmount reported that it has received proceeds of circa £286,155, net of all costs, from the sale of 300,000 common shares in Meren Energy Inc. (formerly Africa Oil Corp.; "MER"; TSX: MER.TO, Nasdaq Stockholm: MER.ST), representing all of Westmount's holding in MER. The purchase cost of these shares, in June 2023, was £538,633 which indicates a net loss of £224,221 had been incurred after exchange rate movements and attributable dividends of circa £28,255 during the ownership period.
On 30 June 2025, Westmount held a total of 5,651,270 shares in JHI, representing approximately 7.2% of the issued common shares in JHI as of 31 December 2022. Following the completion of the Argos-JHI transaction announced on 25 September 2023, the completion of the members voluntary liquidation by Argos and the pro rata distribution of JHI Consideration Shares to Argos shareholders, subsequent to period end Westmount received 33,987 JHI Consideration Shares in lieu of its one million shares in Argos. Westmount currently holds 5,685,257 shares in JHI, representing approximately 6.24% of the enlarged issued share capital of JHI.
As of 30 June 2025, Westmount retains 474,816 common shares in Cataleya Energy Corporation ("CEC") representing approximately 4.13% of the issued shares in CEC.
Westmount continues to hold 1,500,000 shares in EOG, as of 30 June 2025. Further to the completion of the EOG-AOC transaction announced on 29 July 2024, whereby EOG sold a 1% interest in Block 3B/4B South Africa in exchange for cancellation of all of Africa Oil's shares and warrants in EOG, Westmount's 1,500,000 shares represent approximately 0.47% of EOG's common shares estimated to be in issue at completion.
Westmount continues to hold 89,653 shares in Ratio Petroleum representing approximately 0.04% of the issued share capital. On 29 September 2024, it was reported by Ratio Petroleum that they had received a buy-out offer from Ratio Energy Partnership Limited of 0.35NIS per share unit (at prevailing exchange rates the aggregate value to Westmount was circa USD$8,475), subject to shareholder approval. Subsequently, on 12 January 2025, Ratio Petroleum indicated that, in lieu of the buy-out offer, it was considering a merger proposal from Ratio Energy and on 11 August 2025 Ratio Petroleum announced the temporary suspension of this merger review until the end of the year.
The complete investment portfolio is summarised in Table 1. The reported financial loss for the period is primarily made up of a non-cash loss on financial assets held at fair value through the profit and loss, some of which is as a result of Foreign Exchange movements on the portfolio Investments when valued at the period end.
Summary/Outlook
The last twelve months have been a challenging period for Westmount - against a backdrop of limited visibility to Guyanese drilling activity within our investee portfolio, diminishing resources, combined with a large seller and exiting shareholder - resulting in the company being valued as an investment shell by the London AIM market for much of this time with little or no value being attributed to the company's private holdings in JHI and CEC.
Nevertheless, the Guyana-Suriname basin remains a prolific hydrocarbon province with potential for significant undiscovered resources in multiple plays. However, in spite of less benign fiscal terms than those available to Guyanese incumbents, the Suriname sector has delivered a more dynamic exploration program this year with five exploration wells (from four different operators) scheduled for drilling or underway in 2025 vs only one exploration well in the Guyanese sector (none outside of the Stabroek Block). Macro factors such as operator dominance and priorities, prolonged ExxonMobil/Hess-Chevron arbitration proceedings and the Guyanese electoral cycle, together with differing prospect economic thresholds, have all contributed to this asymmetry.
While the arbitration proceedings were resolved in July 2025 and the sitting government was re-elected in September 2025 - substantial drill-ready prospects, which have been high-graded on the Kaieteur, Canje and Orinduik blocks for some time, remain to be evaluated by the drill-bit. Furthermore, a number of challenges with respect to JV alignment/composition, environmental permitting and financing all need to be overcome to progress to the drilling phase. In particular, it is likely that all three JVs are now going to require licence extensions to be negotiated from Q1 2026 for drilling activity to be delivered on these blocks.
In contrast, the Falkland Islands and the anticipated FID with respect to the Sea Lion development has generated much excitement in recent months. This FID is being viewed as unlocking the North Falklands Basin and providing a catalyst for further exploration in this prolific basin. Falkland Islands explorers have been substantially re-rated over the past twelve months and, serendipitously, Westmount with an effective economic interest of 6.24% in Production Licence PL001 now joins a peer group, with two other London AIM listed players, that offer investors exposure to the emerging Falkland Islands story. The continued positive statements from Navitas with regards to the Sea Lion development and the recent equity fundraisings by both Navitas and Rockhopper indicate that the project is on track for FID prior to year end.
Production Licence PL001 is immediately adjacent to the west of Production Licence PL032 containing the Navitas Petroleum/Rockhopper Sea Lion development. PL001 is located in modest water depths (<500m) and is fully covered by 3D seismic. JHI's internal estimates indicate a prospect inventory defined on 3D seismic containing an aggregate 3.1bn bbls of prospective recoverable resources with an upside of more than 10 bn bbls5. So far, two oil prospects, Tyche and Dinlas, have been high-graded within the same stratigraphic interval as the Sea Lion discovery - each containing a potential 400 MMbbls recoverable5.
Westmount has no debt and sufficient cash resources to fund the minimum (irreducible) corporate overhead into H2 2026, with liquid investments available, if necessary, to increase this runway. Westmount is also looking at ways which would allow shareholders to more efficiently retain shareholdings in the company's private holdings.
In the interim, the board of Westmount continues to actively explore project and consolidation opportunities, both within and without the sector, to deliver improved shareholder value.