REG - Westmount Energy Ld - Update re: acquisition of JHI by Eco

Westmount EnergyAnnouncement

Tue 07:00

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RNS Number : 0290D  Westmount Energy Limited  05 May 2026

 

 

5(th) May 2026

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

Acquisition of JHI by Eco and update on Westmount's shareholding

Westmount Energy Limited (UK AIM: WTE.L), the AIM-quoted oil and gas investing
company focussed on high impact drilling outcomes in emerging basins, is
pleased to report that, further to the announcements on 11(th) March 2026 and
30(th) April 2026 of the proposed acquisition of JHI Associates Inc. ("JHI")
by Eco (Atlantic) Oil and Gas Ltd. ("Eco")(1a,1b,2), Westmount has now
received from JHI the Shareholder Circular (the "JHI Circular") published in
connection with this transaction (the "Acquisition"). The Acquisition values
JHI at approximately GBP£62.2M (approximately USD$88.5M) based upon the
mid-market closing price of Eco's Common Shares on AIM of £0.65 on 1(st) May
2026. Pursuant to the Acquisition, Eco has agreed to acquire the issued and to
be issued shares of JHI not already held by Eco based upon an exchange ratio
of 0.7054 common Eco share for each JHI share. On completion of the
Acquisition, Eco will issue up to 96,307,811 new Common Shares such that up to
approximately 21.8% of Eco's enlarged issued share capital will be held by the
shareholders of JHI. The completion of the Acquisition is subject to several
closing conditions including the approval of two thirds of the votes cast by
JHI Shareholders at an annual and special meeting to be held to approve the
transaction on 12(th) May 2026. Eco has reported(1b) that shareholders
representing approximately 60% of JHI's outstanding issued share capital have
already entered into voting support agreements in favour of the Acquisition.
 

 

Westmount has been a longstanding shareholder in JHI, accumulating the
majority of its stake via a placing and grey market cash share purchases and
share swaps between December 2016 and January 2021. Westmount welcomes this
Acquisition which, in the opinion of the Board of Directors of Westmount,
represents a significant growth opportunity for JHI, offering synergies and
potential cost savings across an enlarged portfolio, while also enhancing the
liquidity of Westmount's shareholding in JHI. Westmount intends to vote in
favour of the transaction at the JHI shareholders meeting scheduled for 12(th)
May 2026.

 

JHI is a private, Ontario-registered, company established in 2014 and focused
on oil exploration opportunities in the emerging Guyana-Suriname (17.5% W.I.
Canje Block(3)) and North Falklands (35% W.I. PL001 Licence) basins. Eco is a
publicly listed (AIM and TSX Venture Exchange) oil and gas exploration company
with a diversified portfolio of assets offshore Guyana, Namibia and South
Africa as well as a Strategic Partnership with Navitas Petroleum LP an
international oil and gas exploration and production company.

 

Upon closing, this acquisition will result in JHI shareholders having exposure
to a diversified portfolio of exploration and appraisal assets across the
South Atlantic Margin, including assets in emerging, prolific, hydrocarbon
provinces such as the Orange Basin, the Guyana Basin and the North Falklands
Basin. In addition, JHI shareholders will have access to pre-funded, high
impact, drilling opportunities in Block 3B/4B offshore South Africa, Orinduik
Block, offshore Guyana and Licence PL001, offshore Falklands(4). JHI
shareholders will also benefit from Eco's strategic partnership with Navitas
Petroleum LP ("Navitas"), previously announced on 4(th) December 2025(5),
which has the potential, via embedded option arrangements, to significantly
enhance operational capacity and funding support for work programs with
respect to other assets in the portfolio and additional new ventures.
Furthermore, Eco's recently announced farm-down to BP(6) of a 60%
Participating Interest and operatorship in three Walvis Basin Licences (PELs
97, 99 and 100), offshore Namibia, offers a significant new growth opportunity
within the portfolio by providing funded work programs while retaining
material exposure with potential for carried deepwater drilling on each of the
three licences.

 

 

Shareholding Update

 

Prior to completion of the Acquisition, Westmount holds a total of 5,685,167
common shares and 50,000 warrants in JHI together with 1,500,000 common shares
in Eco. In addition, Westmount has entered into a Memorandum of Agreement with
a JHI management shareholder, conditional upon closing of the Acquisition, to
purchase for a nominal amount an additional 4,000,000 common shares in Eco
(equivalent to 5,670,542 JHI shares) immediately upon closing of the
Acquisition. These additional 4,000,000 common shares in Eco are bound by the
lock-up provisions contained in the lock-up agreement entered into by JHI
management shareholders and Eco. Subject to completion of that purchase and
the closing of the Acquisition, Westmount will hold a total of 9,527,432
common shares in Eco. This holding includes the conversion of currently held
JHI shares and warrants using the exchange ratio and formula outlined in the
JHI Circular, the newly purchased 4,000,000 Eco shares, plus Westmount's
existing holding in Eco of 1,500,000 common shares.

 

 

 

(1a)https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/xo94emx
(https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/xo94emx)

(1b)https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/x8v1ypw
(https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/x8v1ypw)

 

(2)https://www.jhiassociates.com/ (https://www.jhiassociates.com/)

 

(3)The Canje Licence lapsed on the 4(th) March 2026 and is subject to ongoing
extension discussions with the Government of Guyana.

 

(4)Drilling in all three jurisdictions is subject to outstanding Government
discussions re Licence extensions and/or Farm-in approvals and/or regulatory
approvals

 

(5)https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/rnez1pr
(https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/rnez1pr)

 

(6)https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/xo9ov1x
(https://polaris.brighterir.com/public/eco_atlantic_oil_gas_plc/news/regulatory_news/story/xo9ov1x)

 

For further information, please contact:

 

Westmount Energy
Limited
www.westmountenergy.com

David King,
Director
Tel: +44 (0) 1534 823000

 

 

Cavendish Capital Markets Limited (Nomad and Broker)           Tel:
+44 (0) 20 7397 8900

Neil McDonald / Pete Lynch

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