Antrim Energy – Double Whammy

It’s been a busy time for Antrim lately with 5 meaningful RNS’s in the last 4 weeks.

One month ago – Antrim announced an Oil Discovery at the Contender Well in the Northern North Sea. Tests were needed to be done before the discovery could be deemed commercial. Flow rates have not been published as yet but in an RNS yesterday, Antrim said.

“The discovery has been re-named the “Cormorant East Field”. A FDP for the Cormorant East Field has been approved by the UK Department of Energy and Climate Change (“DECC”). The FDP calls for the field to be initially produced under primary depletion, with the potential to install a water injection scheme at a later date. Completion and tie-in of the Contender Well is underway, with first oil anticipated before the end of the year.”

Add to this, current production on Causeway which is on a ’53% choke’ is delivering around 1500bopd net to Antrim. The company will look to increase this to nearer 3000bopd net to Antrim full in 2013. The Fionn field (next door to Causeway) is expected to come online in Mid 2013 bringing with it a further 1800bopd net to Antrim. Hence, by Mid 2013, Antrim could be knocking out close to 5000bopd. That’s clearly very meaningful for a company with no debt and a market cap of just £87.4mln.

Add to this is the two RNS’s below.

The potential from Cyclone is meaningful and the market has priced this at zero at present. Should the Well succeed (drilled by Premier Oil) then Antrim could at last see some major share price movement.

Far from being a one track pony – Antrim also has very attractive interests in Ireland and Tanzania. Both regions have been in high demand after significant discoveries announced over the last 6 months.

Whilst Antrim does not appear as too popular with the normal traders on AIM – it’s more to do with the fact that the company has just 184mln shares in issue. Limited liquidity tends to make share price movements more dramatic.

Also the company is Dual listed on the canadian TSX exchange meaning that it is stamp duty free via the UK brokers.

It also pops into the ISA or SIPP.

Like many E&P’s, there is always large risk attached that involves a number of factors whether that be economic, oil prices or funding concerns.

Antrim management have worked hard over the last few years to see the business into solid production. Long term holders will know that it’s been a long wait. But today, they are producing decent cash flow and have plenty lined up to boost it further in 2013.

The icing on the cake would be a great result from Cyclone prospect but any boost in production over the next few weeks and months will certainly have the city’s ear.

Antrim Energy is part of thesharehub’s Hotlist picks for 2012.

Thesharehub’s target on Antrim Energy is 120p (reduced in April from 160p due to Fyne Field news).

Current sp 47p

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November 22, 2012 Antrim Announces Commencement of Drilling Operations for the Cyclone Prospect in UK Central North Sea

CALGARY, ALBERTA and LONDON, UNITED KINGDOM–(Marketwire – Nov. 22, 2012) – NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S. Antrim Energy Inc. (TSX:AEN) (AIM:AEY)

Antrim today announced that it has been informed by operator Premier Oil UK Limited (“Premier”) that drilling operations have commenced for the Cyclone prospect in UK Central North Sea Licence P1784 Block 21/7b (Antrim working interest 30%).

Well 21/07b-4, which is being drilled with the Awilco WilPhoenix semi-submersible rig, will target the Tertiary Cromarty sandstones at a drilling depth of approximately 5,000 feet true vertical depth. Antrim and Premier acquired the licence in the 26th Seaward Licensing Round, as previously announced on October 28, 2010.

and….

November 22, 2012

Antrim Announces Development Approval of the Cormorant East Field in UK Northern North Sea

CALGARY, ALBERTA and LONDON, UNITED KINGDOM–(Marketwire – Nov. 22, 2012) – NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S. Antrim Energy Inc. (TSX:AEN) (AIM:AEY)

Antrim today announced that a Field Development Plan (“FDP”) has been approved for the Cormorant East Field in UK Northern North Sea Block 211/22a Contender Area (the “Contender Block”, Antrim interest 8.4%).

As previously announced (October 22, 2012), Antrim and partners successfully drilled well 211/21-N94 (the “Contender Well”) and penetrated a thick section of oil-bearing sandstones in the Tarbert Formation of the Jurassic Brent Group, with excellent porosity and oil saturation and no water zone encountered. The discovery has been re-named the “Cormorant East Field”. A FDP for the Cormorant East Field has been approved by the UK Department of Energy and Climate Change (“DECC”). The FDP calls for the field to be initially produced under primary depletion, with the potential to install a water injection scheme at a later date.

Completion and tie-in of the Contender Well is underway, with first oil anticipated before the end of the year. Production will be processed at the North Cormorant platform operated by TAQA Bratani Limited (“TAQA”) before being exported to the Sullom Voe terminal for sale. Other interests in the Contender Block are TAQA 60% (Operator), Dana Petroleum (E&P) Limited 20%, First Oil Expro Limited 7.6% and Bridge Energy Enterprises Limited 4%. Under the terms of the farm-out agreement with TAQA, Antrim’s working interest share of the drilling, completion and tie-in costs were funded by TAQA. Antrim’s share of the completion and tie-in costs will be recovered by TAQA from production revenue.

Additional information concerning Antrim Energy Inc. is available at www.antrimenergy.com. Investor inquiries may be directed to info@antrimenergy.com or 1-403-264-5111.