CALGARY, ALBERTA and LONDON, UNITED KINGDOM--(Marketwired - April 18, 2013) -
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Antrim Energy Inc., a Canada-based international exploration and production company, today announced a farmout agreement for its Licensing Option 11/05 (Antrim 100%) in the Porcupine Basin offshore Ireland's west coast.
Kosmos Energy Ltd. ("Kosmos") will acquire 75% interest and operatorship in the Licensing Option in exchange for carrying the full costs of a planned 3D seismic programme within the licence area (the "Skellig Block") and re-imbursement to Antrim of a portion of the exploration costs incurred on the blocks to date. Antrim will retain 25% interest. The transaction is subject to approval of the Department of Communications, Energy and Natural Resources of Ireland ("DCENR"). Kosmos and Antrim expect to apply to DCENR for conversion of the Licensing Option to a Frontier Exploration Licence and approval for the 3D seismic programme as soon as possible. Under the terms of the Licensing Option, a minimum of 25% of the area must be relinquished when converting to a Frontier Exploration Licence.
Antrim acquired the Licensing Option in the 2011 Atlantic Margin Licensing Round. The Licensing Option includes Blocks 44/4, 44/5 (part), 44/9, 44/10, 44/14 and 44/15, an area of 1,409 km2. Antrim has licensed, reprocessed and interpreted 2D seismic data over the blocks and identified a Cretaceous deep sea fan complex similar in seismic character to many of the recent discoveries in the Cretaceous offshore West Africa.
The licence adjacent to the Skellig Block contains the Dunquin North and South prospects, which have been estimated by licence partners Providence Resources (Plc) and Sosina Exploration Ltd. to potentially contain in excess of 1,700 million barrels of oil equivalent recoverable volumes in the form of natural gas and gas condensate in a Cretaceous target. ExxonMobil, operator of the licence, is expected to start drilling an exploration well in April 2013.
Kosmos is an oil and gas exploration and production company that discovered and holds a 24.1% interest in the Jubilee Field offshore Ghana, which currently produces approximately 110,000 barrels of oil per day from the deep sea Cretaceous fan reservoir.
Stephen Greer, President and CEO of Antrim, commented, "Antrim is very pleased to have attracted a partner to this licence, and especially a proven player in the discovery and development of the world class deep sea Cretaceous West African oil fields."
Forward-Looking and Cautionary Statements
Some of the statements in this announcement may be forward-looking including statements relating to exploration activities by Antrim and others in the Skellig Block and adjacent areas in offshore Ireland. When used in this announcement, the words "expect", "estimate", "approximate", potential and similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements regarding the intent, belief and current expectations of Antrim Energy Inc. 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, unanticipated changes to the exploration activities for the Skellig Block. 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 Annual Information Form for the year ended December 31, 2012 and dated March 26, 2013 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.
This announcement also contains certain oil and gas information in respect of a property held by Providence Resources (Plc) and Sosina Exploration Ltd. which is "analogous information" as defined applicable securities laws. This analogous information is derived from publicly available information sources which Antrim believes are predominantly independent in nature. This information may not have been prepared by qualified reserves evaluators or auditors and the preparation of any estimates may not be in strict accordance with Canadian Oil & Gas Evaluation Handbook. Regardless, estimates by engineering and geotechnical practitioners may vary and the differences may be significant. Antrim believes that the provision of this analogous information is relevant to Antrim's activities, given its positions and operations (either ongoing or planned) in the area in question, however, readers are cautioned that there is no certainty that any of the development on Antrim's properties will be successful to the extent in which operations on the lands in which the analogous oil and gas information is derived from were successful, or at all.
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 37 years of experience in the upstream oil and gas industry.
- Commodity Markets
President & CEO
Antrim Energy Inc.
Vice President, Exploration
RBC Europe Limited
+44 (0) 20 7029 7881
Tim Thompson/Tom Hufton
+44 (0) 20 7466 5000