Antrim Energy Inc. announces that an independent evaluation of oil resources at the Causeway property in the UK North Sea (Antrim 65.5%, operator) confirmed previous resource estimates. The Company also advised of increased output and the casing of production wells in Tierra del Fuego, Argentina.
UK North Sea
The evaluation by RPS Energy, a UK-based independent engineering company, using data obtained to the end of 2007, determined the Causeway structure holds a best estimate (P50) of total in-place resources of 83 million barrels and a high estimate (P10) of 184 million barrels. The recoverable resources best estimate (P50) is 24 million barrels and high estimate (P10) is 67 million barrels. RPS Energy was commissioned on behalf of the Causeway joint venture to examine and report on resources for use in field development planning for Causeway. The resource estimates shown in the report are presented in accordance with the resource definitions of the Society of Petroleum Engineers. The RPS report was prepared in advance of Antrim’s National Instrument 51-101 compliant reserve report, which is to be completed by McDaniel & Associates Consultants Ltd. and filed before the end of March 2008.
“We are pleased to have an independent view of the resources in the Causeway area that substantiates Antrim’s expectation, especially in regard to the upside potential of the area. The report allows us to continue with Causeway development and project financing plans,” said Stephen Greer, President and CEO of Antrim. “The resource estimates, which are broadly in line with most analysts’ expectations and our own forecasts, support Antrim’s business strategy of quickly moving Causeway to production.”
A Field Development Plan (FDP) for Causeway was initiated by Antrim with the announced appointment of Senergy Ltd. in December 2007. Antrim is currently in discussion with production facility owners and expects to have an agreed ‘export’ route and FDP for the production of oil from Causeway submitted during the first quarter of 2008. Additional appraisal drilling on the Causeway structure, scheduled to start in the summer of 2008, is designed to confirm the higher estimates of recoverable oil including that contained in the undrilled Etive Formation in the East Causeway area.
Meanwhile, in the central North Sea, Antrim’s drilling plans on the Fyne Field in block 21/28a (Antrim WI 75%) are on schedule and Antrim expects to start drilling in late February. The first well will target the Eocene Tay sandstone reservoir at approximately 4,500 ft., close to the Fyne discovery well 21/28a-2 which tested at rates up to 3,600 bopd. This drilling follows Antrim’s recently reported discovery at Kerloch (Antrim, 21%) which penetrated 116 ft of oil column in a single sandstone in the Ness Formation adjacent to the Company’s Causeway property.
Argentina Production
Production from the Company’s properties in Argentina has increased through drilling success to approximately 2,000 boepd from the last reported average production rate of 1,536 boepd (September 30th, 2007). With the completion of additional production facilities, production is expected to rise to 3,000 boepd by July 2008.
Antrim recently completed and cased the sixth well in the previously announced multiwell two year drilling contract in Tierra del Fuego. All of the wells drilled to-date under this contract have been cased for production. Three oil wells drilled in this program are already on production.
The exploration well drilling on the Capricorn licence (Antrim pre-farmout WI 50%, post farmout WI 37.5%) was recently cased in preparation for testing. Test results are expected within a month.
Antrim continues to maintain a strong balance sheet with working capital in excess of $85 million and no debt.
