Antrim Energy Inc.

Antrim Energy Inc.

October 06, 2010 18:08 ET

Antrim and Premier Form Joint Venture in the Fyne Area, UK North Sea

CALGARY, ALBERTA--(Marketwire - Oct. 6, 2010) -


Antrim Energy Inc. ("Antrim") (TSX:AEN) (AIM:AEY) is pleased to announce it has signed an agreement with Premier Oil UK Limited ("Premier") to jointly explore development options for the Fyne Area located in the UK Central North Sea. Under the terms of the agreement, Premier will pay an initial consideration of US$2 million to Antrim, and will have the option to acquire a 39.9% interest in the Fyne Licence (Block 21/28a) in return for a payment ("carry") up to US$50 million, less the initial consideration, towards the pre-development and development costs of the Fyne Field. 

Antrim owns a 75% working interest in the Fyne Licence and a 100% working interest in the adjacent Blocks 21/28b, 21/29c, 21/24b and 21/24c (the Greater Fyne Area). The Agreement also provides Premier the option to participate up to 50% alongside Antrim in a planned drilling programme scheduled to start as early as the 2nd quarter 2011 in the Greater Fyne Area.

Any licence assignment under the agreement will be subject to the usual UK government approvals.

Block 21/28a was assigned proved plus probable reserves of 23.3 million barrels of oil ("MMBO"), net 17.5 MMBO to Antrim, by independent engineering consultants McDaniel & Associates Consultants Ltd. as at 31 December 2009.

Antrim drilled two wells and three sidetracks in a 2008 appraisal programme of the Fyne Field. Well 21/28a-10Z was tested at rates up to 4,000 barrels of oil per day. Wells 21/28a-10Z and 21/28a-9Y were cased and are available for use in the development of the Fyne Field. Initial drilling of the Dandy and Area 4 fields, also on the Fyne Licence, was completed by previous operators of Block 21/28a. The Fyne Field lies immediately west - southwest of the Guillemot group of oil fields, which have produced in excess of 70 MMBO to date. Fyne is also approximately 10 km east of the recently announced Blakeney oil discovery in Block 21/27b and 35 km north of the recently announced Catcher oil discovery in Block 28/9, both of which have reservoirs of comparable age to those in the Greater Fyne Area.

Stephen Greer, President and CEO of Antrim Energy, commented: "We are very pleased to have entered into this agreement with Premier. This is a major step towards the development of the significant reserves already established in the Fyne Licence, and with Premier's recent experience in the Catcher discovery, adds to the exploration potential of the surrounding licences."

Stellar Energy Advisors of London, U.K., acted as advisors to Antrim in this transaction.

Forward-Looking Statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Antrim Energy Inc. When used in this announcement, the word "scheduled" and similar expressions, and the negatives thereof, whether used in connection with the completion of the transaction contemplated by the development of Fyne, drilling activity or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Antrim's control. Please refer to Antrim's Annual Information Form for the year ended December 31, 2009 and dated March 23, 2010 and available for viewing at, for a list of risk factors. Antrim's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Antrim will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Antrim or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release.

Qualified Person Review

In accordance with AIM guidelines, Mr. Terry Lederhouse , P. Eng and Vice President Commercial of Antrim, is the qualified person that has reviewed the technical information contained in this news release.  

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