With outright explorers, it’s not unusual to see lofty or discounted share prices. With E&P’s (emphasis on the P) it’s slightly different. Production is monetised and results in real cash. Whether that’s to finance future ops or pay down debt is ultimately what the markets focus on most.
With Antrim – they have sizable reserves. They have no debt. They have a decent sized cash pile and finally their production numbers are growing.
Today’s news adds a further 460 barrels to the already meaningful production from Causeway. Combined – they are past 2200kbopd and that’s with Causeway on a 50% choke. By mid 2013, water injection methods should see Causeway flowing at much higher rates.
For a company that is valued at just £69mln – Antrim look like the bargain that the north sea analysts seem compelled to ignore. That might not be the same for the eager competition. And in their partners Taqa – they have a potential predator on their door step.
At 36p, Antrim look extremely good value. TheSharehub’s 2013 sp target is currently set at 70p. Multi-bagger potential for 2013.
Watch out for news on the FYNE FDP due towards end of Jan.
January 14, 2013
Antrim Announces First Oil from the Cormorant East Field in UK Northern North Sea
Antrim today announces that first oil production has been achieved from the Cormorant East Field in UK Northern North Sea Block 211/22a Contender Area (the “Contender Block”, Antrim interest 8.4%). The initial production rate is approximately 5,500 barrels of oil per day (net Antrim approximately 460 barrels of oil per day), with no water. First oil was achieved after only 85 days following discovery of the field.
The Cormorant East Field was discovered by Antrim and partners by exploration well 211/21-N94 (the “Contender Well”), as previously announced October 22, 2012. Production is being processed at the North Cormorant platform operated by TAQA Bratani Limited (“TAQA”) before being exported to the Sullom Voe terminal for sale. Cormorant East is initially being produced under primary depletion with a single production well, with the potential to install a water injection scheme and/or additional production wells at a later date.
The operator’s analysis of the field data indicates significant potential for upside, dependent on the reservoir response to the existing well. Further appraisal locations have been identified within the Cormorant East development area, both down-dip from the existing discovery well and in adjacent fault panels.
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 for the Contender Well were funded by TAQA. Antrim’s share of the completion and tie-in costs will be recovered by TAQA from revenue from Antrim’s share of initial production.