Antrim Energy Inc., a Canada-based international exploration and production company, has announced that the UK Department of Energy and Climate Change (“DECC”) has agreed to amend the terms of UK Central North Sea Licence P077 (Antrim 100%) to allow for a revised Field Development Plan (“FDP”) for the Fyne Field to be submitted no later than 31 January 2014.
DECC’s consent to this amendment includes conditions, amongst other things, that the FDP submission is in its final form, the Environmental Statement is cleared, Antrim is approved as a Production Operator, there is satisfactory evidence of project financing, and first production is achieved prior to 25th November 2016.
Antrim previously announced in late March 2013 that, as a result of rapidly escalating costs, the Company would not proceed with development of the Fyne Field with the Hummingbird Spirit Floating Production, Storage and Offloading vessel (“FPSO”). Since that time, Antrim has been working with DECC and industry partners to find an alternative production system for the ten million barrel field (proved plus probable oil reserves, Fyne Field, as per McDaniel & Associates Consultants Ltd effective 31 December 2012). To that end, Antrim has signed a non-binding Heads of Agreement with Enegi Oil Plc (“Enegi”) and Advanced Buoy Technology (“ABTechnology”) to undertake engineering studies and preparation of a FDP using buoy technology. Antrim and Enegi-ABTechnology intend to execute a binding Joint Development Agreement, the terms of which will include that there will be no costs to Antrim prior to FDP approval. Upon approval of the FDP by DECC, Enegi-ABTechnology will earn the right to acquire 50% working interest in the licence. Antrim will remain operator.
Commenting on the licence amendment, Antrim’s CEO Stephen Greer stated: “We are very pleased to receive this consent from DECC. It allows us to continue with and potentially conclude current farm-out discussions with industry partners on the Fyne Field. A relatively low cost solution is being pursued to attempt to bring this fully appraised field to production within the DECC licence schedule.”