CALGARY, ALBERTA--(Marketwired - Dec. 12, 2013) -
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Antrim Energy Inc. ("Antrim" or "the Company") (TSX:AEN)(AIM:AEY), an international oil and gas exploration and production company, today announced that its wholly-owned UK subsidiary Antrim Resources (N.I.) Limited ("ARNIL") has amended its $30 million Payment Swap transaction with Credit Suisse AG ("CSAG") and a Brent oil price Commodity Swap transaction with Credit Suisse International ("CSI").
In November 2013 the Company announced that it anticipated higher than expected capital costs to complete the Causeway development and was subject to requirements to place additional funds into a reserve account with its lender. Under the amendment ARNIL will receive a waiver to February 28, 2014 of its requirement to top up its capital expenditure reserve account and will be allowed to access currently restricted cash balances in order to make payments with respect to Causeway costs as well as ongoing principal and interest payments. As at December 5, 2013 a total of $3.85 million in principal payments and $1.2 million in interest payments have been made as scheduled.
Also under the amendment ARNIL has deferred commodity swap payments due in December 2013, January 2014 and February 2014 on an aggregate of 86,481 barrels. Commodity swap payments due on an aggregate of 142,890 barrels (including the 86,481 barrels referred to above) were deferred to the period July 2015 to December 2016 to reflect a delay from the original production profile which contemplated both the electric submersible pump ("ESP") and water injection facilities to be operational in 2013 and now forecast to be operational in early 2014 and mid 2014, respectively. A total of 494,652 barrels remains outstanding under the commodity swap. In exchange for the above amendments, the previously fixed swap price of US$ 89.37 per barrel has been reduced to US $81.21 per barrel. The estimated fair value of the change in swap price is $2.35 million.
In conjunction with the amendment the Company is continuing to review other options, including possible divestments. Since production from the Causeway Field recommenced on October 23, 2013 production has been stable averaging 2,325 gross barrels of oil per day ("bopd") (Antrim net 680 bopd) in November 2013. In November, the water injection riser pull-in was successfully completed with subsea tie-ins at the platform and water injection tree end still to be completed, as well as topside pipe and ESP related modifications on the Cormorant North platform.
Antrim Energy Inc. is a Canadian, Calgary based junior oil and gas exploration and production company with assets in the UK North Sea and Ireland. Antrim is listed on the Toronto Stock Exchange (AEN) and on the London Stock Exchange's Alternative Investment Market (AEY). Visit www.antrimenergy.com for more information.
Forward-Looking and Cautionary Statements
This press release and any documents incorporated by reference herein contain 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 and any documents incorporated by reference herein should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this press release or the particular document incorporated by reference herein and Antrim does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws.
In particular, this press release contains specific forward-looking statements and information pertaining to development plans with respect to Causeway capital expenditure programs and other expenditures, supply and demand for oil, NGLs and natural gas, expectations regarding Antrim's ability to raise capital, the schedules and timing of certain projects, and the amended payment swap and Brent oil commodity swap
With respect to forward-looking statements contained in this press release, Antrim has made assumptions regarding Antrim's and its partners' ability to obtain additional drilling rigs and other equipment in a timely manner, future oil and natural gas production levels from Antrim's properties, the ability of Antrim's partners to meet their commitments as they relate to the Company and Antrim's reliance on industry partners for the development of some of its properties, Antrim's ability to meet its obligations under the payment swap and the forward sale of Brent oil crude, 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, platform shutdowns affecting production levels, 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 substantial capital requirements and operations and to repay its obligations under the payment swap and Brent oil commodity swap, 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 of adverse results from litigation, the accuracy of oil and gas reserve estimates and estimated production levels as they are affected by the Antrim's exploration and development drilling and estimated decline rates, in particular the future production rates at the Causeway and Cormorant East Fields in the UK North Sea. 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, 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 throughout this press release and in Antrim's Annual Information Form for the year ended December 31, 2012. Readers are specifically referred to the risk factors described in Antrim's MD&A under "Risk Factors" 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. Kerry Fulton, P. Eng and Vice President, Operations for Antrim, is the qualified person that has reviewed the technical information contained in this press release. Mr. Fulton has over 30 years operating experience in the upstream oil and gas industry.