UK: Antrim to Regain Operatorship of Fyne Licence

Antrim Energy Inc  Antrim, an international oil and gas exploration and production company headquartered in Calgary, Canada, yesterday announced that, under the terms of the Joint Operating Agreement (the “JOA”), Antrim will regain working interest and reserves and anticipates regaining operatorship in UK Central North Sea licence P077 Block 21/28a (the “Fyne Licence”) from Premier Oil UK Limited at no cost.

Antrim’s current working interest in the Fyne Licence of 35.1% will increase to between 58.4% and 100%, contingent on the election by the other party to the JOA. The continuance of the Fyne Licence and the increase in working interest is subject to the approval from the UK Department of Energy and Climate Change (“DECC”) of the working interest and operatorship change. DECC is expected to make this determination in the coming weeks.

 Stephen Greer, Antrim CEO, commented: “We are very pleased to increase our interest in the Fyne Field and associated licence. Over the past year, our partners in Fyne have invested over $32MM, funding appraisal drilling and the evaluation and design of potential production infrastructure. The result is that the field is now fully appraised and contingent on the production facility design work, meets Antrim’s economic criteria. The current production design work being carried out by Atkins is applicable not only to the Fyne Field, but may also have a significant impact on other small previously ‘stranded’ sub-20 million barrel reserve fields in the UK North Sea.”

In the meantime, Antrim is preparing a Field Development Plan (“FDP”) for the Fyne Field. Approval of the FDP by DECC will allow Antrim to proceed with the development and achieve first oil in late 2014. The FDP will contain an updated reserve estimate, production profile and details of the production facility. The proposed production facility is expected to use a small floating SPAR system. Atkins Oil and Gas, a major engineering and design firm based in the UK and a recognized industry leader in the design of floating production, storage and offloading units, is currently completing a concept study for use of a SPAR at Fyne.

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Offshore Energy Today Staff, April 13, 2012