Antrim Energy Inc., an international oil and gas exploration company, has announced the results of a prospective resources report for the Company’s interests in Frontier Exploration Licence 1/13 (“FEL 1/13”) which includes blocks 44/4, 44/5 (part), 44/9, 44/10, 44/14 and 44/15 (collectively the “Skellig Block”, Antrim 25% working interest) offshore Ireland.
These prospective resources were evaluated by McDaniel & Associates Consultants Ltd. (“McDaniel”) in accordance with National Instrument 51-101 in a report dated effective June 30, 2014.
Prospective resources were assigned to 17 leads within the Skellig Block. The report estimates a total unrisked prospective resource potential of 1.1 billion barrels of oil equivalent (‘Best Estimate’) on the licence.
Prospective resources are defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.
Best Estimate – This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
However, Antrim explains that there is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be economically viable or technically feasible to produce any portion of the resources.
The report further assigns a best estimate of 482 million barrels of oil equivalent (42.7% of the total) to two of the primary leads currently designated Leads “C” and “M-3”.
Antrim says that results from the recently acquired 3-D seismic programme strongly indicate the presence of Lower Cretaceous slope fan and channel deposits similar in geometry and seismic character to many of the recent Cretaceous oil discoveries offshore West Africa.
Antrim acquired a Licencing Option over the Skellig area in 2011. A 75% interest in the Option was subsequently farmed out to Kosmos Energy Ltd. (“Kosmos”) and converted into a Frontier Exploration Licence (“FEL 1-13”) in 2013. In return for the farm-out, Kosmos agreed to carry Antrim for the full costs of a 1,000 km2 3-D seismic programme and re-imbursement of a portion of the costs previously incurred on the licence. The 3-D seismic program was completed in 2013 and forms the basis of this new resource assessment.
In a statement issued today, Antrim listed both positive and negative sides of Skellig exploration. Positive aspects of exploration in the Skellig Block are: (I) similarity of basin geology to geology of the northern part of the Porcupine Basin and the Canadian North Atlantic basins on the conjugate margin where hydrocarbon discoveries have been made; and (II) a working petroleum system with a proven Jurassic source and the possibility of mature Cretaceous shales.
Potential concerns of exploration in the Skellig Block are: (I) the presence of significant quantities of reservoir quality sands at depths of 4,000 to 6,000 metres subsea; (II) lateral seals in Cretaceous stratigraphic traps; and (III) hydrocarbon migration into potential Cretaceous reservoirs.
July 29, 2014