Antrim, an international oil and gas exploration and production company headquartered in Calgary, Canada, today announced the UK Department of Energy and Climate Change (“DECC”) has approved the Field Development Plan (“FDP”) for the Fionn Field in the UK North Sea Block 211/22a South East Area.
Antrim holds a 35.5% working interest in the Fionn licence, which is immediately adjacent to the Causeway Field in Block 211/23d (Antrim 35.5%).
The Fionn FDP utilizes previously drilled and suspended well 211/22a-6 as a production well. This well, drilled in 2007 during the appraisal phase of Fionn and Causeway, tested oil from the Ness and Etive formations at a combined flow rate of approximately 5,500 barrels of oil per day (“bopd”). The well will be completed with dual electrical submersible pumps and first oil is anticipated in mid-2013. Initial production is estimated at 4,500 bopd (1,600 bopd net to Antrim).
Well productivity and reservoir pressure data will be monitored and reserves estimates periodically reviewed. If it is determined that pressure support is warranted, water injection can be facilitated with an existing suspended well in the Fionn Field.
Fionn production will be combined with the Causeway Field production and transported for processing to the Cormorant North platform. Gathering lines for Fionn were installed at the same time as Causeway as a pre-investment. Antrim’s share of the development costs for the Fionn Field, including the pre-investment costs, is expected to be approximately $22 million. Valiant Petroleum plc (through wholly owned subsidiaries owner of 64.5% working interest and operator of the Fionn licence) agreed to finance Antrim’s working interest share of the Fionn Field pre-investment costs. Antrim has the option for three months following first oil production from the Causeway Field to opt out of participating in the Fionn Field development, or to confirm its participation in the Fionn Field development by paying its 35.5% working interest share of the pre-investment costs plus interest in respect to the financing.
Antrim’s reserves evaluator, McDaniel and Associates Consultants Ltd. estimated the Fionn Field contains 6.2 million barrels of proved plus probable oil reserves (Antrim net 2.2 million barrels) as of December 31, 2011.
First oil production from the Causeway Field remains on track for September 2012, with an anticipated 3,000 bopd net to Antrim.
Press Release, August 21, 2012