CALGARY, ALBERTA and LONDON, UNITED KINGDOM--(Marketwire -08/21/12)- NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.
Antrim, an international oil and gas exploration and production company headquartered in Calgary, Canada, today announced the UK Department of Energy and Climate Change ("DECC") has approved the Field Development Plan ("FDP") for the Fionn Field in the UK North Sea Block 211/22a South East Area. Antrim holds a 35.5% working interest in the Fionn licence, which is immediately adjacent to the Causeway Field in Block 211/23d (Antrim 35.5%).
The Fionn FDP utilizes previously drilled and suspended well 211/22a-6 as a production well. This well, drilled in 2007 during the appraisal phase of Fionn and Causeway, tested oil from the Ness and Etive formations at a combined flow rate of approximately 5,500 barrels of oil per day ("bopd"). The well will be completed with dual electrical submersible pumps and first oil is anticipated in mid-2013. Initial production is estimated at 4,500 bopd (1,600 bopd net to Antrim).
Well productivity and reservoir pressure data will be monitored and reserves estimates periodically reviewed. If it is determined that pressure support is warranted, water injection can be facilitated with an existing suspended well in the Fionn Field.
Fionn production will be combined with the Causeway Field production and transported for processing to the Cormorant North platform. Gathering lines for Fionn were installed at the same time as Causeway as a pre-investment. Antrim's share of the development costs for the Fionn Field, including the pre-investment costs, is expected to be approximately $22 million. Valiant Petroleum plc (through wholly owned subsidiaries owner of 64.5% working interest and operator of the Fionn licence) agreed to finance Antrim's working interest share of the Fionn Field pre-investment costs. Antrim has the option for three months following first oil production from the Causeway Field to opt out of participating in the Fionn Field development, or to confirm its participation in the Fionn Field development by paying its 35.5% working interest share of the pre-investment costs plus interest in respect to the financing.
Antrim's reserves evaluator, McDaniel and Associates Consultants Ltd. estimated the Fionn Field contains 6.2 million barrels of proved plus probable oil reserves (Antrim net 2.2 million barrels) as of December 31, 2011.
First oil production from the Causeway Field remains on track for September 2012, with an anticipated 3,000 bopd net to Antrim.
Some of the statements in this announcement may be forward-looking including statements relating to Antrim's anticipated first production dates and production rates for Causeway and Fionn. Forward-looking statements include statements regarding the intent, belief and current expectations of Antrim Energy Inc. When used in this announcement, the words "anticipate", estimate", "expect" and similar expressions, whether used in connection with drilling activity or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements, including without limitation, the first production dates and initial production rates for the Causeway and/or Fionn Fields. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Antrim's control. Please refer to Antrim's Amended and Restated Annual Information Form for the year ended December 31, 2011 and dated March 26, 2012 and available for viewing at www.sedar.com, for a list of risk factors. Antrim's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Antrim will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Antrim or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release.
In accordance with AIM guidelines, Mr. Terry Lederhouse, P. Eng and VP - Commercial of Antrim is the qualified person that has reviewed the technical information contained in this news release. Mr. Lederhouse has over 36 years experience in the upstream oil and gas industry.