Westmount Energy Ltd on Monday noted an announcement by Argos Resources Ltd, regarding the completion of an acquisition by JHI Associates Inc of the North Falklands Basin production licence, PL001.

Westmount Energy is an oil and gas investing company focused on high impact drilling outcomes in emerging basins. Shares in the firm were up 26% at 2.39 pence each in London on Monday afternoon.

PL001 is located in the North Falklands Basin, immediately to the west of the giant Sea Lion discovery. It covers a total area of 1,126 square kilometres.

As previously announced by Argos, the consideration for the acquisition of operatorship and 100% working interest in PL001 is 8.5 million JHI common shares, as well as £303,500 in cash. The consideration shares are expected to represent approximately 9.3% of the enlarged share capital of JHI following completion of the transaction.

Following the completion of this transaction, Argos has been placed into members voluntary liquidation. Its shares, which are currently suspended, will be cancelled from admission to trading on AIM with effect from 0700 BST on September 26.

Prior to the completion of the transaction, Westmount held a total of 5.7 million shares in JHI, representing approximately 7.2% of the issued common shares in JHI as of December 31.

Westmount also held 1.0 million shares in Argos, representing approximately 0.4% of the issued common shares in Argos as of March 3.

It is anticipated that approximately 33,600 of the consideration shares will be distributed to Westmount as a result of the company’s shareholding in Argos at the relevant date.

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