Antrim Energy Inc., has released its 2007 year-end financial and operating results, including a summary of reserves and reserve evaluation independently assessed by McDaniel & Associates Consultants Ltd.
2007 Highlights:
• United Kingdom proved plus probable oil reserves increased 50% to 29.3 million barrels
• Total corporate proved plus probable reserves increased 20% to 38.1 million boe
• Production (all Argentina) increased 35% to an average of 1,553 boepd
• $87 million in working capital and agreed terms for a pre-development working capital facility
“The past year has been one of wide ranging success for Antrim. The very significant (50%) increase in the Company’s UK reserves, and associated value, underpins our aim to bring the UK properties to production as soon as possible,” said Stephen Greer, President and CEO.
“Additionally, Antrim’s strong treasury and access to debt facilities ensures the Company is well financed to transform these reserves to substantial cash flow and value for our shareholders.”
Oil and gas revenue increased 15% from 2006 due to an increase in oil and gas production from the Tierra del Fuego licences. Cash flow from operations was $4.8 million in 2007 compared to $3.7 million in 2006.
Capital expenditures in 2007 increased 104% to $102.3 million, the majority associated with the appraisal drilling program on the Causeway property in the UK North Sea. In 2007, five wells were drilled and completed in the UK Northern North Sea (Causeway and Kerloch licences). In Argentina, Antrim participated in drilling eight wells during the year in three of its seven licence areas. Drilling in Tierra del Fuego recommenced in September 2007 as part of a two-year drilling program.
2008 Outlook
In March 2008, a multi-lateral drilling program was initiated on the Fyne licence. The current operation entails drilling one pilot well and two side tracks and is being optimized using 3-D seismic acquired in 2007. A second rig contract has been signed which will provide Antrim with the Transocean "Prospect" semi-submersible drilling rig for up to four additional wells scheduled to begin in June 2008. The drilling contract will allow Antrim to accelerate appraisal activity on the Company's existing properties in the Northern and Central North Sea and it is also expected to provide Antrim with the flexibility to add additional drilling opportunities to its 2008 program. The evaluation and acquisition of additional exploration licences in the UK North Sea is also planned in 2008.
The Company plans to submit a Field Development Plan (“'93FDP”'94) for the Causeway property in the second quarter of 2008 and begin to invest in production facilities during the third quarter of 2008 with a view to commence production from the property in late 2009.
In March 2008, Antrim announced that it had agreed terms for a US$50 million working capital facility to be available for pre-development costs associated with the Causeway property. The working capital facility is subject to satisfactory due diligence, execution of full documentation and achievement of all conditions precedent. Upon approval of the FDP, the facility is expected to be replaced with a US $150 million senior secured field development facility and a contingent cost overrun facility.
In Tierra del Fuego, Argentina, 16 wells are expected to be drilled in 2008 and additional 3D seismic is planned. Antrim also expects to follow-up on the successful drilling on the Medianera licence with the addition of up to 6 wells in 2008.
Total capital expenditures planned for 2008 are $113 million which the company anticipates will be funded from a combination of existing working capital, cash flow from operations and debt facilities.
