Antrim Energy Inc. (“Antrim”), an international oil and gas exploration and production company, announces that Premier Oil UK Limited (“Premier”) has provided notice that it has elected to drill the East Fyne well under the Joint Venture and Earn-In Agreement with Antrim (the “Agreement”), previously announced 6th October 2010.
The East Fyne well is an appraisal well designed to de-risk the eastern extent of the Fyne Field in Block 21/28a UK Central North Sea, and is expected to be drilled before the end of 2011. Under the conditions of the previously announced transaction, the well will be drilled at no cost to Antrim and the cost of drilling, completion and/or abandonment deducted from Premier’s carried contribution of up to $50 million assigned to offset all or a portion of Antrim’s development expenses to bring the Fyne Field to production.
This election by Premier results in the transfer of a 39.9% working interest and operatorship of the Fyne Block 21/28a from Antrim to Premier. Antrim retains a 35.1% working interest in the block, with First Oil Expro Limited holding the remaining 25% working interest. The licence assignment and transfer of operatorship under the Agreement is subject to partner approval and to the usual UK government approvals.
The Fyne Block 21/28a was assigned gross proved plus probable reserves of 23.3 million barrels of oil by independent engineering consultants McDaniel & Associates Consultants Ltd. as at Dec. 31, 2010. The Fyne Field is situated immediately west-southwest of the Guillemot group of oil fields, which have produced in excess of 70 million barrels of oil to date. Fyne is also located approximately 35 kilometres north of the recently announced Catcher and Burgman oil discoveries in Block 21/9, both of which have reservoirs of comparable age with those in the Fyne Field.
Drilling of the East Fyne well will be in addition to Antrim’s recently announced drilling plans for two exploration wells in the Greater Fyne Area, the West Teal and Carra wells (Antrim 100%). Premier retains a right to participate up to 50% in the Greater Fyne Area exploration program, which is due to commence mid-year 2011.
About Antrim Energy Inc.
Antrim Energy Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada.
Antrim’s strategy is to pursue a strategy of balancing longer term and capital-intensive investments in the UK North Sea with shorter investment cycle on-shore exploration and production opportunities. Antrim also considers other global exploration opportunities as they arise.
Source: Antrim, April 4, 2011;