Antrim Energy Inc.
TSX VENTURE : AEN
AIM : AEY

Antrim Energy Inc.

November 26, 2015 18:05 ET

Antrim Energy Inc. Announces 2015 Third Quarter Results

CALGARY, ALBERTA--(Marketwired - Nov. 26, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

Antrim Energy Inc. ("Antrim" or "the Company") (TSX VENTURE:AEN) (AIM:AEY), an international oil and gas exploration company, today reported its financial results for the three and nine month period ended September 30, 2015.

All financial figures are unaudited and in US dollars unless otherwise noted.

Highlights

  • Strong cash position, no debt, low G&A costs and limited financial commitments moving forward

  • Obtain 100% interest in the highly prospective Skellig Block, Ireland (subject to finalization and government approval)

  • Completion of abandonment program in United Kingdom Central North Sea

  • Realization of significant abandonment cost reductions ($1,900)

  • Collection of abandonment amounts ($4,487) due from industry partners (November 2015)

Corporate

Antrim, with its current cash resources, no debt and no decommissioning obligations, continues to maintain a strong financial position. Working capital at September 30, 2015 was US$10.1 million (CAD $0.07 per share) and in November 2015 the Company collected amounts due from its former joint venture partners for their portion of the successful 2015 abandonment program.

In addition the Company anticipates obtaining at no further cost, a 100% working interest in Frontier Exploration Licence ("FEL") 1/13, subject to finalization and government approval of the transfer of Kosmos Energy Ireland's ("Kosmos") interest to Antrim. Antrim was one of the first companies to realize the potential in the southern Porcupine Basin. The Company has, in conjunction with Kosmos, identified numerous leads including two highly prospective Jurassic fault blocks and one Cretaceous submarine fan system in the FEL 1/13 licence. The Porcupine Basin is the conjugate basin to the eastern Canadian Orphan Basin/Flemish Pass area. Studies of these conjugate margins have demonstrated many similarities in terms of source rock, maturation, hydrocarbon migration, reservoir characteristics, and trap formation. To move exploration of FEL 1/13 forward, Antrim will be seeking to farm-out to a new operator a portion of its interest in the licence. Participants' interest in the Ireland 2015 Atlantic Margin Licensing Round which closed in September 2015 was very high and the results, when announced, may have a further impact on the farm-out process.

With respect to the Company's search for M&A opportunities, there is a growing consensus that oil and gas sector M&A activity will increase. Antrim will continue to assess opportunities based on, amongst other criteria, strategic fit, focus on near term appraisal / development, use of funds, transformative potential with upside potential for Antrim shareholders and current or near term cash flow.

Ireland

Frontier Exploration Licence ("FEL") 1/13, Antrim 25%

In 2013, Kosmos farmed-in to Antrim's Licencing Option over the Skellig Block and acquired 75% interest in and operatorship of FEL 1/13 in exchange for carrying the full costs of a 3-D seismic programme and re-imbursement of a portion of Antrim's past exploration costs. Results from the subsequent 3-D seismic reinforced Antrim's interpretation based on 2-D seismic and strongly indicated the presence of Lower Cretaceous slope fan and channel deposits similar in geometry and seismic character to many of the recent Cretaceous oil discoveries offshore West Africa.

In September 2015, Antrim was advised by Kosmos that it intended to withdraw from all of its licence interests in Ireland to focus on other recent discoveries in their African portfolio. The Company anticipates obtaining at no further cost a 100% working interest in and operatorship of the licence, subject to finalization and government approval of the transfer of Kosmos interest in FEL 1/13 to Antrim.

Prior to their notice to withdraw, Kosmos prepared a prospect inventory which includes several leads previously identified and highlights three prospects including two tilted Jurassic fault blocks and a Cretaceous submarine fan. Two of the three prospects were included as leads in the prospective resources evaluated by McDaniel & Associates Consultants Ltd. ("McDaniel") in accordance with National Instrument 51-101 in a report dated effective June 30, 2014. In the McDaniel Report, prospective resources were assigned to 17 leads within the Skellig Block, further details of which are included in Antrim's AIF for the year ended December 31, 2014. A second Jurassic prospect identified by Kosmos has yet to be reviewed by McDaniel.

FEL 1/13 has a 15 year term, with an initial three-year term followed by three four-year terms.The initial three year term of the FEL expires in early July 2016. At least three months before the end of the initial term a work programme for the second term must be proposed. That programme must include the drilling of an exploration well.

Fyne Licence

P077 Block 21/28a - Fyne, Antrim 100%

United Kingdom Seaward Licences require licensees to permanently abandon all suspended wells prior to licence expiry. In the third quarter of 2015 the Company successfully permanently plugged and abandoned three suspended wells on the Fyne Licence and one suspended well on the Erne Licence in the United Kingdom Central North Sea. The well abandonment campaign was completed as part of a larger abandonment programme allowing Antrim to share certain common costs offering significant cost savings.

The Company is in discussion with the Oil and Gas Authority (OGA), formerly DECC, with respect to relinquishment and possible reapplication for the licence. The carrying value of the Fyne Licence at September 30, 2015 is $nil (December 31, 2014 - $nil).

Erne Licence

P1875 Block 21/29d - Erne, Antrim 50%

Previous discoveries on the Erne Licence are not commercial on their own, but may be economic to develop as tie-backs to an adjacent production facility if such a facility were available. The carrying value of the Erne Licence at September 30, 2015 is $nil (December 31, 2014 - $nil).

Financial Discussion of Continuing Operations

Three Months Ended Nine Months Ended
September 30 September 30
($000's except per share amounts) 2015 2014 2015 2014
Financial Results
Cash flow used in operations (1) (2,173 ) (109 ) (2,826 ) (3,798 )
Cash flow used in operations per share (1) (0.01 ) (0.00 ) (0.01 ) (0.02 )
Net income (loss) - continuing operations 736 (538 ) 2,009 (5,742 )
Net income (loss) per share - basic, continuing operations 0.00 (0.00 ) 0.01 (0.03 )
Net income (loss) 736 (528 ) 2,009 (9,212 )
Net income (loss) per share - basic 0.00 (0.00 ) 0.01 (0.05 )
Total assets 17,188 18,401 17,188 18,401
Working capital 10,103 16,501 10,103 16,501
Capital expenditures - continuing operations 56 78 142 273
Common shares outstanding
End of period 184,731 184,731 184,731 184,731
Weighted average - basic 184,731 184,731 184,731 184,731
Weighted average - diluted 184,731 184,731 184,731 184,731
(1) Cash flow used in operations and cash flow used in operations per share are Non-IFRS Measures. Refer to "Non-IFRS Measures" in Management's Discussion and Analysis.

Cash Flow and Net Income (Loss) from Continuing Operations

In the nine month period ended September 30, 2015 cash flow used in operations was $2.8 million compared to cash flow used in operations of $3.8 million for the corresponding period in 2014. Cash flow used in operations decreased due to lower G&A costs and a $2.0 million foreign exchange gain in 2015 as a result of a significant decline year to date in the value of the Canadian dollar relative to the US dollar, partially offset by actual decommissioning costs incurred in 2015. Excluding foreign exchange gains and losses, cash flows used in operations in nine month period ended September 30, 2015 increased to $4.8 million compared to $4.0 million for the corresponding period in 2014 due to actual decommissioning costs incurred in 2015.

In the nine month period ended September 30, 2015, Antrim had net income from continuing operations of $2.0 million compared to a net loss from continuing operations of $5.7 million for the corresponding period in 2014. Net income increased due to lower decommissioning obligations, foreign exchange gains and lower general and administrative costs.

Financial Resources and Liquidity

Antrim had a working capital surplus at September 30, 2015 of $10.1 million compared to a working capital surplus of $15.1 million as at December 31, 2014. Working capital decreased due to general and administrative expenses and actual decommissioning costs incurred in the period.

Outlook

The Company continues to search for M&A opportunities and assess those opportunities based on, amongst other criteria, strategic fit, focus on near term appraisal / development, use of funds, transformative potential with upside potential for Antrim shareholders and current or near term cash flow.

About Antrim

Antrim Energy Inc. is a Canadian, Calgary based junior oil and gas exploration company with assets in the UK North Sea and Ireland. Antrim is listed on the TSX Venture Exchange (AEN) and on the London AIM market (AEY). Antrim's third quarter 2015 interim report (including management's discussion and analysis and consolidated financial statements), is available on SEDAR and our website. Visit www.antrimenergy.com for more information.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Forward-Looking and Cautionary Statements

This press release contains certain forward-looking statements and forward-looking information which are based on Antrim's internal reasonable expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information. Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting", "forecast", "achieve" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements and information. Antrim believes that the expectations reflected in those forward-looking statements and information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements and information included in this press release should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this press release and Antrim does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws.

This press release may contain specific forward-looking statements and information pertaining to Antrim's plans for exploring and developing its licences, including exploration of the Skellig block, the anticipated increase of Antrim's working interest in the Skellig block to 100%, commodity prices, foreign currency exchange rates and interest rates, capital expenditure programs and other expenditures, supply and demand for oil, NGLs and natural gas, expectations regarding Antrim's ability to raise capital or pursue farm-out opportunities, to continually add to reserves through acquisitions and development, the schedules and timing of certain projects, Antrim's strategy for growth, Antrim's future operating and financial results, treatment under governmental and other regulatory regimes and tax, environmental and other laws.

With respect to forward-looking statements contained in this press release, Antrim has made assumptions regarding: Antrim's ability to obtain additional drilling rigs and other equipment in a timely manner, obtain regulatory approvals (including for the Skellig block), the consideration received in the ARNIL Sale will not change materially as a result of post-closing adjustments, the level of future capital expenditure required to exploit and develop resources and Antrim's reliance on industry partners for the development of some of its properties, the general stability of the economic and political environment in which Antrim operates and the future of oil and natural gas pricing. In respect to these assumptions, the reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

Antrim's actual results could differ materially from those anticipated in these forward-looking statements and information as a result of assumptions proving inaccurate and of both known and unknown risks, including risks associated with the exploration for and development of oil and natural gas reserves such as the risk that drilling operations may not be successful, unanticipated delays with respect to the development of Antrim's properties, operational risks and liabilities that are not covered by insurance, volatility in market prices for oil, NGLs and natural gas, changes or fluctuations in oil, NGLs and natural gas production levels, changes in foreign currency exchange rates and interest rates, the ability of Antrim to fund its capital requirements, Antrim's reliance on industry partners for the development of some of its properties, risks associated with ensuring title to the Company's properties, liabilities and unexpected events inherent in oil and gas operations, including geological, technical, drilling and processing problems, the risk that the consideration from the ARNIL Sale is reduced as a result of post-closing adjustments and the accuracy of oil and gas resource estimates as they are affected by the Antrim's exploration and development drilling. Additional risks include the ability to effectively compete for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, Antrim's success at acquisition, exploitation and development of reserves, changes in general economic, market and business conditions in Canada, North America, Ireland, the United Kingdom, Europe and worldwide, actions by governmental or regulatory authorities including changes in income tax laws or changes in tax laws, royalty rates and incentive programs relating to the oil and gas industry and more specifically, changes in environmental or other legislation applicable to Antrim's operations, and Antrim's ability to comply with current and future environmental and other laws, adverse regulatory rulings, order and decisions and risks associated with the nature of the Common Shares.

Many of these risk factors, other specific risks, uncertainties and material assumptions are discussed in further detail in Antrim's MD&A and in Antrim's Annual Information Form for the year ended December 31, 2014. Readers are specifically referred to the risk factors described in Antrim's MD&A under "Risks and Uncertainties" and in other documents Antrim files from time to time with securities regulatory authorities. Copies of these documents are available without charge from Antrim or electronically on the internet on Antrim's SEDAR profile at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

In accordance with AIM guidelines, Mr. Murray Chancellor, C. Eng., MICE and Managing Director, United Kingdom for Antrim, is the qualified person that has reviewed the technical information contained in this press release. Mr. Chancellor has over 25 years operating experience in the upstream oil and gas industry.

Contact Information

  • Antrim Energy Inc.
    Anthony Potter
    President, Chief Executive Officer
    and Chief Financial Officer
    + 1 403 264-5111
    potter@antrimenergy.com

    RFC Ambrian Limited
    Samantha Harrison
    +44 (0) 20 3440 6800