UK

Antrim entered the North Sea after recognizing that major producers (whom have had a historic presence in the region) were exiting because the region no longer made sense from an economic point of view. These fields however, offer significant opportunities for smaller producers.  This has proven to be the case for Antrim, and as a result the company has made a number of discoveries in the region including Causeway and the prolific Fyne field (75% owned by Antrim). 

Antrim is currently in the process of undertaking the work required to bring these two fields on stream.  Fyne is expected to be producing by 2012. It is expected that Fyne will produce (net to Antrim) approximately 14,500 barrels per day, adding significantly to the companies cash flow position.

“Greater Fyne” offers tremendous expansion opportunities as well, and to this effect, the company has pursued and been awarded a number of adjacent and surrounding blocks.  These blocks surround the “Guillemot fields” operated by Petro Canada, which contain upwards of 60 million barrels per field . These fields have proven to be prolific producers with average decline levels of only 15%.  Antrim owns 100% of the blocks in the “Greater Fyne” area.

Causeway represents the first discovery for Antrim in the North Sea.  Antrim recently signed a Conditional Letter Agreement ("CLA") with Valiant Petroleum plc (March 4, 2010) to sell a 30% interest in the Northern North Sea Causeway property. In return, Antrim will receive US$21.75 million contributed to the development costs of bringing the field to production startup.

Completion of the transaction is subject to several conditions, including sanction of the Field Development Plan ("FDP") and the consent of the UK Department of Energy and Climate Change ("DECC").

As part of the transaction, Antrim will transfer related tax losses to Valiant, and, subject to formal DECC and partner consent, operatorship of the field. The CLA provides that Valiant will endeavour to finalize a revised FDP with respect to the development of the Causeway Field for submission to DECC during 2010. Following completion of the transaction, Antrim will remain a 35.5% working interest holder in the Causeway Field.

Other blocks that Antrim holds interest, in the region, also hold very good promise and Antrim may pursue these opportunities in the future.  These blocks include Kerloch, and Dunluce.

 

Antrim holds interests in the following areas:

  • Northern North Sea - Causeway (Block 211/22a SE & 211/23d)
  • Northern North Sea - Kerloch (Block 211/22a NW)
  • Northern North Sea - Block 2/10a & 2/15b
  • Central North Sea - Fyne (Block 21/28b, 21/29c, 21/24c, 21/24b)
  • Northern Ireland - South Larne License (PL1/01)

The United Kingdom has one of the most attractive fiscal (tax/royalty) systems of any major petroleum producing area in the world.