Antrim Energy: Causeway Production Increases Cash Flow

Antrim Energy Inc., an international oil and gas exploration and production company, reported its financial and operational results for the three and nine month period ended September 30, 2013.

In the nine month period ended September 30, 2013, Antrim generated cash flow from operations of $9.1 million ($0.05 per share) compared to a cash deficiency from operations of $5.3 million ($0.03 per share) in the same period in 2012. Cash flow from operations increased due to the recognition of revenue from Causeway production.

In the three month period ended September 30, 2013, Antrim generated cash flow from operations of $1.4 million ($0.01 per share) compared to a cash deficiency from operations of $0.5 million ($0.00 per share) in the same period in 2012. Cash flow from operations increased due to the recognition of revenue from Causeway production.

In the nine month period ended September 30, 2013 Antrim had a net loss from continuing operations of $18.0 million compared to a net loss from continuing operations of $67.7 million in the same period in 2012. The net loss decreased primarily due to the recognition of revenue from Causeway production and a gain of $7.5 million on the disposal of the Tanzania option, higher impairment costs recorded in 2012 and a reduction in 2012 in the fair value of financial assets partially offset by a gain on disposal of the Company’s Argentina operations.

In the third quarter of 2013, Antrim had a net loss from continuing operations of $16.1 million compared to a net loss from continuing operations of $5.2 million in 2012. Net loss increased due to Causeway and West Causeway impairment charges recorded in 2013 partially offset by the recognition of revenue from Causeway production and a gain of $7.5 million on the disposal of the Tanzania option.

There are a number of material uncertainties that raise significant doubts as to the Company’s ability to continue as a going concern, including compliance with debt covenants, the performance of producing wells and related infrastructure, oil prices, ability to finish the planned development program for Causeway within budget, ability to secure additional financing, relinquishment of commitments on certain licences and settlement of contingencies. See Going Concern on page 1 of the Company’s Management’s Discussion and Analysis for additional information.

As at September 30, 2013, Antrim had a working capital deficiency including debt of $14.4 million compared to a working capital deficiency of $10.7 million as at December 31, 2012. Accounts payable and accrued liabilities were $6.1 million at September 30, 2013 primarily related to costs for the development of the Causeway Field, compared to $18.2 million as at December 31, 2012.

Antrim’s planned capital program for the remainder of 2013 is primarily costs associated with the ongoing development of the Causeway Field and the Cormorant East Field.

Outlook

Antrim expects to see increased production from the Causeway Field following deployment of the ESP in early 2014. A water injection scheme is scheduled to commence operation in Q3 2014.

Following the discovery of the Cormorant East Field by the Contender Well, Antrim anticipates drilling at least one appraisal well in 2014, downdip of the discovery well and a plan to explore the adjacent fault compartments.

Recent seismic studies on the Skellig block in the Porcupine Basin offshore Southwest Ireland have high graded the Dunree Prospect. Antrim and Kosmos anticipate completing processing of 3D seismic data acquired within the area by Q1 2014.

In addition to ongoing discussions between the Company and its lender to mitigate the impact of restrictions on cash balances and existing loan terms requiring further cash reserves, the Company is reviewing its options, including possible further divestments including a possible divestment of all or a part of its Causeway asset, and has engaged Carlingford, a division of GFI Brokers Limited to advise and assist the Company with this process. There can be no assurance, however, that additional capital funding in the form of additional equity, debt, sale and/or farm-out arrangements will be available to the Company.

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November 15, 2013