Westmount Energy Hess Corporation reported on Monday that Hess Corporation had increased its direct stake in the Kaieteur block off Guyana to 20% from 15%.

The AIM-traded company said the increase in Hess Corporation’s working stake was due to the oil discovery of Tanager-1, announced in November, and via Cataleya’s reduction of a 5% working stake. Energy (CEL) in Hess.

He said that Tanager-1, the first well drilled on the Kaieteur block, encountered 16 meters of net oil payout in high-quality Maastrichtian-age sandstone reservoirs, and confirmed the extension of the oil system from the Cretaceous and Liza’s speedboat play fairway of the prolific finds on the Stabroek block operated by neighboring ExxonMobil.

The well was reported as an oil discovery, which was currently considered non-commercial as a stand-alone development.

Westmount said high-quality reservoirs were also encountered in Tanager-1 at the deeper Santonian and Turonian intervals, although the interpretation of reservoir fluids was found to be equivocal and required further analysis.

A report published by a knowledgeable person in the Netherlands, Sewell & Associates indicated that the Tanager-1 Maastrichtien discovery contained a “best estimate” of the raw, unsafe contingent oil resources of 65.3 million barrels, with a “best estimate” estimate ”of non-risky net contingent oil resources attributable to the Kaieteur block of 42.7 million barrels.

In addition to the Tanager-1 oil discovery, a large inventory of Cretaceous prospects was mapped on the 5,750 square kilometer 3D seismic survey, located in the southern part of the block, where the Kaieteur joint venture partners were currently at. high grade for potential future drill targets. .

After the CEL farm closed, Westmount said the Kaieteur joint venture was made up of Esso Exploration and Production Guyana, the operator, at 35%, as well as Ratio Guyana at 25%, Cataleya Energy at 20% and Hess Guyana Block. B 20% exploration.

Westmount owns approximately 5.3% of the issued share capital of Cataleya Energy Corporation, the parent company of CEL, and approximately 0.04% of the issued share capital of Ratio Petroleum, the ultimate holding company of Ratio Guyana.

“We are very encouraged to see Hess, one of the Stabroek block partners and a leading player in the Guyana-Suriname basin, increase its direct stake in the Kaieteur block following the 2020 Tanager-1 oil discovery. Said the executive chairman. Gerard Walsh.

“This decision is in line with Stabroek’s partners’ assessment that the total potential of the Guyana-Suriname basin is now more than double the resource discovered to date – indicating a potential resource yet to be found exceeding 10 billion. oil equivalent. barrels across the basin.

“This is also consistent with the view that considerable potential for hydrocarbon resources may be present in emerging deeper areas, such as the Lower Campanian-Upper Santonian zone, where 3D seismic data suggests that the channel systems are at least as extensive. as they are in the upper Maastrichtian-Campanian fairway of Liza.

At 1344 BST, shares of Westmount Energy rose 2.13% to 12p.