OTCPK:ATGYF - Post by User
Comment by
Bigbadoilon Mar 04, 2010 11:41am
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Post# 16842904
RE: Antrim Sells 30% Interest in Causeway
RE: Antrim Sells 30% Interest in CausewayAs per their last presentation, the net costs to AEN to fully fund Causeway to production was $67 mill US.
With this deal they have fully fund Causeway and relinquish operatorship to Valiant who have facilities in the area.
AEN 2P reserves were 8mm bbls. They have sold 30% of that for $21.75 mm = 2,4mmbbls =22.75/2.4= $9.47US/bbl
Is this a bad deal? looking at the realised price above you could argue yes. However the commitment net to Antrim was $67mm to develop the oil They have sold 30% of the reserves and self funded the development.
Lets wait and see what happens at Fyne - lots more potential there anyway and lots of deals to do around it (PetroCanada assets for sale).
Bigbadun'