RE: RE: aen Antrim Energy Inc. Announces 2013 First Quarter Financial and Operational Results
CALGARY, ALBERTA--(Marketwired - May 15, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.
Antrim Energy Inc. ("Antrim" or "the Company")(TSX:AEN) (AIM:AEY), an international oil and gas exploration and production company, today reported its financial and operational results for the three month period ended March 31, 2013.
All financial figures are unaudited and in US dollars unless otherwise noted.
HIGHLIGHTS:
- Causeway production rates average gross 3,336 bbls/day (net 976 bbls/day) for first quarter of 2013 - gross 3,885 bbls/day (net 1,136 bbls/day), excluding 15 days of interrupted production due to platform shutdowns
- Oil revenues of $12.0 million and cash flow from operations of $6.6 million
- Antrim raises $30 million in Payment Swap transaction including a forward sale of 657,350 barrels of oil
- Cormorant East commenced production in January
- Farm out of the Ireland Skellig Block to Kosmos Energy Ltd.
Overview of Continuing Operations
Causeway Licences
Licence P201 Block 211/22a South East Area and P1383 Block 211/23d, Antrim 35.5%
The Causeway Licences include the Causeway Field and the West Causeway area. Production from the Causeway Field averaged 3,336 gross barrels of oil per day ("bopd") (Antrim net 976 bopd) in the first quarter of 2013 compared to nil in 2012, after production commenced in November 2012. During the quarter production was interrupted for eight days due to a shut down on the Cormorant Alpha platform and an additional seven days due to shut downs on the North Cormorant platform. Oil production is transported by pipeline to the North Cormorant production platform where it is processed before being exported to the Sullom Voe terminal via the Brent Pipeline System for sale. In the first quarter of 2013, the Company recognized oil revenue of $12 million.
Rig operations commenced in January 2013 to complete the water injector for the Causeway Field and were completed in February 2013. Anticipated startup of the downhole electrical submersible pump ("ESP") will follow completion of topside modifications on the North Cormorant production platform, and is scheduled for the second half of 2013. The recently completed water injection well is expected to commence operation in 2014.
As part of the sale of a 30% working interest in the Causeway Licences to Valiant Petroleum plc ("Valiant") in October 2011, Antrim entered into a Differential Lifting Agreement ("DLA") giving Valiant a temporary right to 6.25% of Antrim's share of produced oil. Antrim's share of oil produced will be reduced to 29.25% until a cumulative value of $8.9 million after-tax is received by Valiant. Once satisfied, Antrim's working interest in production will revert back from 29.25% to 35.5%.
Under the terms of the Fionn Field Supplementary Agreement signed with Valiant in January 2012, Antrim had an option for three months following first oil production from the Causeway Field to opt out of participating in the Fionn Field development and sell its 35.5% working interest share to Valiant for the cost of its 35.5% working share of the Fionn Field pre-investment costs, or to confirm its continued participation by repaying its share of the Fionn pre-investment costs plus interest.
In February 2013, Antrim announced that it had elected to opt out of participating in further development of the Fionn Field. The projected costs associated with the development of Fionn had increased to the extent that the project no longer met Antrim's economic criteria. Subject to all necessary approvals from the UK Department of Energy and Climate Change ("DECC"), Antrim intends to withdraw from the Fionn Field subarea and will not incur any further liabilities.