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Antrim Energy Inc. Reports 2013 Financial and Operational Results

Antrim Energy Inc. Reports 2013 Financial and Operational Results 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Antrim Energy Inc. 
TSX SYMBOL:  AEN
AIM SYMBOL:  AEY 
MARCH 28, 2014 
Antrim Energy Inc. Reports 2013 Financial and Operational Results 
CALGARY, ALBERTA--(Marketwired - March 28, 2014) -  
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S. 
Antrim Energy Inc. ("Antrim" or "the Company") (TSX:AEN)
(AIM:AEY), an international oil and gas exploration and production company,
today reported its 2013 year-end financial and operational results. The results
include a summary and evaluation of reserves that have been independently
assessed by McDaniel & Associates Consultants Ltd. in accordance with the
standards specified by National Instrument 51-101. 
All financial figures are unaudited and in US dollars unless otherwise noted. 
Corporate Update 
On February 7, 2014 the Company announced that it entered into an agreement
(the "Agreement") with First Oil Expro Limited ("FOE")
pursuant to which, subject to the terms and conditions of the Agreement, FOE
has agreed to purchase from the Company (the "Transaction") all of
the issued and outstanding shares in the capital of Antrim's UK
subsidiary, Antrim Resources (N.I.) Limited ("ARNIL") for $53 million
in cash, plus the assumption of certain liabilities and adjusted working
capital, from which Antrim will settle on closing all outstanding obligations
under its Payment and Oil Swap agreements. The economic date of the proposed
transaction is January 1, 2014 and a $5 million deposit was received from FOE
to be applied towards the purchase price. Should the Transaction be completed
in April 2014, Antrim expects to have approximately $17 - $18 million in
working capital after repayment of the Payment and Oil Swap. 
The Board of Directors of Antrim, after consultation with its financial and
legal advisors, unanimously approved entering into the Agreement and recommends
that Antrim shareholders approve the Transaction at a special meeting of
shareholders to be held on April 4, 2014 (the "Meeting"). Full
details of the Transaction are included in a management information circular
(the "Circular") mailed to Antrim shareholders on February 28, 2014.
Two leading independent proxy advisory firms have both recommended that Antrim
shareholders vote FOR the proposed special resolution to approve the
Transaction. See Going Concern on page 1 of Management's Discussion and
Analysis for additional information.  
Antrim believes that certain factors necessitate Antrim monetizing its interest
in ARNIL at the present time and without delay. Antrim is or expects to be in
breach of certain covenants under its Payment and Oil Swap agreements. To date,
Antrim's counterparties to these agreements have not been willing to
assume additional risk that would result from granting Antrim more time to meet
the covenants which are or are expected to be in breach. In the event that
Antrim is unable to remedy these covenant breaches and expected covenant
breaches in a manner satisfactory to Credit Suisse, Credit Suisse may declare
that Antrim is in breach of its obligations and they may become due and payable
in full. If this result were to occur, it would likely have serious financial
consequences for Antrim. Antrim believes that the ARNIL sale delivers an
attractive price for the ARNIL assets and is a fair offer. Antrim thoroughly
and exhaustively considered numerous alternatives generated in conjunction with
Antrim's financial advisor, Carlingford. See the Circular filed on SEDAR
at www.sedar.com for further details. 
If the ARNIL sale is completed, Antrim will have no debt and will be able to
continue to operate as a going concern, engaged in the oil and gas business,
with greater financial resources and an opportunity to further develop
Antrim's remaining assets as well as greater opportunities to raise
capital or seek other strategic alternatives, including a possible business
combination, to maximize shareholder value. It is possible that following
completion of the ARNIL sale, Antrim will no longer meet the minimum listing
requirements of the TSX, specifically the requirement that the Company have
proved developed reserves associated with one or more of its oil and gas
properties. Accordingly, the Company has applied for a listing on the TSXV to
be effective on or about the Completion Date (in the event that the Company no
longer meets the minimum listing requirements of the TSX). In addition to
further development of its remaining properties, Antrim continues to consider
various international exploration opportunities where Antrim believes such
opportunities will create value for Antrim Shareholders.  
Your vote is important. Regardless of the number of shares you own, we
encourage every shareholder to participate. To be effective, proxies must be
voted in advance of the meeting and, in the case of non-registered or
beneficial shareholders, no later than 3:00 p.m. (Calgary Time) on April 2,
2014. For further details, refer to the management proxy circular filed on
SEDAR at www.sedar.com. Shareholders who require assistance in voting their
proxy may direct their inquiry to Antrim's proxy solicitation agent, CST
Phoenix Advisors, toll-free in North America at 1-800-311-0721 or by email at
inquiries@phoenixadvisorscst.com. 
Financial Resources, Liquidity and Going Concern 
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 and
settlement of contingencies. See Going Concern on page 1 and Risk Factors on
page 16 of Management's Discussion and Analysis for additional
information.  
As a result of the decision to divest, the majority of the Company's UK
segment assets and liabilities have been reclassified as held for sale and the
operations have been accounted for as discontinued operations. Comparative
figures have been reclassified to conform with this presentation (see note 4 of
the consolidated audited financial statements). 
Antrim had a working capital surplus at December 31, 2013 of $0.8 million
compared to a working capital deficiency of $10.7 million as at December 31,
2012. Without the reclassification of assets and liabilities held for sale,
Antrim had a working capital deficiency at December 31, 2013 of $24.0 million,
including bank debt (after discount) of $20.2 million and financial derivative
(after discount) of $8.2 million. The reported bank debt and financial
derivative amounts on the balance sheet at December 31, 2013 are after
discount. The actual principal amount of bank debt outstanding at December 31,
2013 is $24.7 million compared to a balance sheet amount of $20.2 million. If
the Company were to have settled the financial derivative at December 31, 2013
the payment amount would have been $10.6 million compared to a balance sheet
amount of $8.2 million.  
Overview of Continuing Operations 
Fyne Licence 
P077 Block 21/28a - Fyne, Antrim 100% 
In late March 2013 the Company announced that it would not proceed with
development of the Fyne Field with an FPSO following a significant escalation
of expected future development costs. The Company subsequently signed a joint
development agreement with Enegi Oil Plc ("Enegi") and Advanced Buoy
Technology ("ABTechnology") to undertake engineering studies and
preparation of a Field Development Plan ("FDP") using buoy
technology. The terms of the agreement include that there will be no costs to
the Company prior to FDP approval. During the second half of 2013
Enegi-ABTechnology worked with contractors to engineer the production facility
for Fyne. The environmental statement is now due to be submitted during March
2014. Engineering work is now expected to continue during the summer with FDP
approval to be sought prior to August 31, 2014. Upon approval of the FDP by
DECC, Enegi-ABTechnology will earn the right to acquire 50% working interest in
the licence. Antrim will remain operator.  
DECC has agreed to amend the terms of the Fyne Licence to allow for a FDP for
the Fyne Field to be submitted no later than August 31, 2014. DECC's
consent to the amendment includes conditions, amongst other things, that the
FDP submission is in its final form, the environmental statement is cleared,
the Company is approved as a production operator, there is satisfactory
evidence of project financing, and first production is achieved prior to
November 25, 2016. If these conditions are not met, or if extensions from DECC
are not obtained, potential consequences to Antrim could include the expiry of
the Fyne Licence in accordance with its terms. 
The independent evaluation of Antrim's oil and gas properties for the year
ended December 31, 2013 prepared by McDaniel & Associates Consultants Ltd.
and dated March 22, 2014 (the "McDaniel Report") did not assign any
reserves to the Fyne Field compared to 11.8 million barrels proved plus
probable reserves assigned to the Fyne and Crinan fields at December 31, 2012.
The decrease is attributed to relinquishment in July 2013 of the Crinan
Prospective Area and uncertainty as to the development of the Fyne Field.  
Erne Licence  
P1875 Block 21/29d - Erne, Antrim 50% 
The Erne Licence started in January 2011 and is a Promote Licence with a
drill-or-drop commitment. The Erne well (21/29d-11 and 11z) drilled in late
2011 met all the commitments on the Licence. A discovery was made with the
21/29d-11 well and also in the up-dip side-track 21/29d-11z well. These
discoveries are not commercial on their own, but may be economic to develop as
tie-backs to an adjacent production facility if that transpires. The initial
four year term of the Licence expires in January 2015 at which time there is a
requirement to relinquish 50% of the Licence area. Erne has never been assigned
any proved, probable or possible reserves or contingent resources. 
Ireland 
Frontier Exploration Licence 1-13, Antrim 25% 
Antrim acquired a Licensing Option in the 2011 Atlantic Margin Licensing Round
which included Blocks 44/4, 44/5 (part), 44/9, 44/10, 44/14 and 44/15 covering
an area of 1,409 km2 (the "Skellig Block"). Antrim licensed,
reprocessed and interpreted 2D seismic data over the blocks and identified a
Cretaceous deep sea fan complex similar in seismic character to many of the
recent Cretaceous discoveries offshore West Africa. 
In April 2013, the Company farmed out a 75% interest in, and operatorship, of
the Licensing Option to Kosmos Energy Ltd. ("Kosmos") in exchange for
Kosmos carrying the full costs of a planned 3D seismic program within the
licence area and re-imbursement to Antrim of a portion of the exploration costs
incurred on the blocks to date. Antrim retained a 25% interest. The transaction
was approved by the Department of Communications, Energy and Natural Resources
of Ireland ("DCENR").  
On July 15, 2013, DCENR approved the conversion of the Licensing Option to a
Frontier Exploration Licence ("FEL"). FEL 1-13 has a 15 year term,
with an initial three-year term followed by three four-year terms, following a
mandatory 25% relinquishment of the Licensing Option area. The remaining
licence area is 1,051.75 km2. 
The approved work programme for the initial three year term of the FEL involves
acquisition of 3D seismic over the FEL area followed by seismic processing,
interpretation and geological studies. Seismic acquisition commenced on July
10, 2013 and was completed by the end of September 2013. Processing and
interpretation of the seismic data is in progress. 
Overview of Discontinued Operations  
Causeway Licences 
Licence P201 Block 211/22a South East Area and P1383 Block 211/23d, Antrim
35.5% 
Production from the Causeway Field averaged 2,178 gross barrels of oil per day
("bopd") (Antrim net 637 bopd) in 2013 compared to an average of
4,081 gross bopd (Antrim net 1,194 bopd) from November to December 31, 2012. In
2013 production was interrupted for 11.5 weeks due to platform shutdowns and
well tie-in operations related to another field. Production averaged 1,714
gross bopd (Antrim net 501 bopd) for the three months ended December 31, 2013
compared to 1,439 gross bopd (Antrim net 421 bopd) in the third quarter of
2013. Scheduled maintenance of the North Cormorant platform interrupted oil
production for 21 days in the fourth quarter compared to 33 days in the third
quarter. Oil production is transported by pipeline to the North Cormorant
production platform where it is processed before being exported to the Sullom
Voe terminal via the Brent Pipeline System for sale.  
Anticipated startup of the downhole ESP and water injection well is now
scheduled by the operator for late April 2014 following ongoing delays in
completing required platform modification and water injection riser
installation work. Until startup of the ESP oil is being produced in cycles to
allow for sufficient pressure buildup between cycles.  
Delays in completing the Causeway ESP and water injection facilities together
with additional significant capital cost overruns on the project caused the
Company to record a $12.1 million impairment charge in the third quarter of
2013. Following the agreement to sell all of the issued and outstanding shares
in ARNIL, the Company recorded a $14.6 million impairment charge in the fourth
quarter of 2013. 
The McDaniel Report effective December 31, 2013 assigned the Causeway Field
gross proved plus probable reserves of 4.957 million barrels (1.76 million net
to Antrim) representing a 14% decrease from December 31, 2012 due to 2013
production.  
Contender Licence 
P201 Block 211/22a Contender Area, Antrim 8.4% 
On January 14, 2013, Antrim announced that first oil production had been
achieved from the Cormorant East Field 85 days after discovery of the field.
Production is processed through the North Cormorant platform before being
exported to the Sullom Voe terminal. The Cormorant East Field is initially
being produced under primary depletion with a single production well (the
"Contender well"), with the potential to run an electrical
submersible pump and to install a water injection scheme and/or additional
production wells at a later date. A future drilling location has been
identified and is scheduled to be drilled mid 2014.  
Under the terms of the farm-out agreement with the operator, 100% of the
drilling, completion and tie in costs of the Contender Well were funded by the
operator. Antrim will receive its share of production after Antrim's
working interest share of the completion and tie in costs plus 10% are
recovered from production revenue.  
Production from the Cormorant East Field has been constrained for mechanical
reasons and averaged 457 gross bopd (Antrim net 38 bopd) in 2013 compared to
nil in 2012. Production from the Cormorant East Field averaged 377 gross bopd
(Antrim net 32 bopd) for the three months ended December 31, 2013 compared to
508 bopd (Antrim net 43 bopd) in the third quarter of 2013.  
The McDaniel Report effective December 31, 2013 assigned the Cormorant East
Field gross proved plus probable reserves of 7.1 million barrels (0.6 million
net to Antrim) representing a 2% decrease from December 31, 2012 due to 2013
production.  
Financial Discussion of Continuing Operations  
All amounts reported in this press release related to the three month periods
ended December 31, 2013 and 2012 are unaudited.  
/T/ 
Three Months Ended          Year Ended  
December 31,        December 31,  
2013      2012      2013      2012 
----------------------------------------------------------------------------
Financial Results ($000's except per                                        
 share amounts)                                                             
------------------------------------                                        
Cash flow used in operations (1)       (1,836)   (8,137)   (8,526)  (13,388)
Cash flow used in operations per                                            
 share (1)                              (0.01)    (0.04)    (0.05)    (0.07)
Net loss - continuing operations       (2,377)  (67,131)   (9,445) (134,805)
Net loss per share - basic,                                                 
 continuing operations                 (0 .01)    (0.36)    (0.05)    (0.73)
Net loss                              (21,212)  (67,155)  (39,202) (134,544)
Net loss per share - basic              (0.11)    (0.36)    (0.21)    (0.73)
Total assets                           91,836    96,520    91,836    96,520 
Working capital (deficiency)              788   (10,734)      788   (10,734)
Capital expenditures - continuing                                           
 operations                               239      (582)      616     9,074  
Common shares outstanding (000's)                                           
------------------------------------                                        
End of period                         184,731   184,731   184,731   184,731 
Weighted average - basic              184,731   184,848   184,731   184,388 
Weighted average - diluted            184,731   185,681   184,731   185,528 
(1) Cash flow from operations and cash flow from operations per share are    
Non-IFRS Measures. Refer to "No n-IFRS Measures" in Management's         
Discussion and Analysis.                                                 
/T/ 
About Antrim 
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 and any documents incorporated by reference
herein, contain specific forward-looking statements and information pertaining
to the quantity of and future net revenues from Antrim's reserves of oil,
natural gas liquids ("NGL") and natural gas production levels. This
press release may also contain specific forward-looking statements and
information pertaining to Antrim's plans for exploring and developing its
licences, including exploration of the Skellig block, future development plans
with respect to Causeway and Cormorant East properties, factors affecting
production processed at the North Cormorant platform, commodity prices, foreign
currency exchange rates and interest rates, capital expenditure programs and
other expenditures, Antrim's financing arrangements, the proposed
Transaction for the sale of ARNIL, supply and demand for oil, NGLs and natural
gas, expectations regarding Antrim's ability to raise capital, 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 and
any documents incorporated by reference herein, Antrim has made assumptions
regarding Antrim's ability to obtain additional drilling rigs and other
equipment in a timely manner, obtain regulatory approvals, future oil and
natural gas production levels from Antrim's properties and the price
obtained from the sales of such production, the level of future capital
expenditure required to exploit and develop reserves, 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
and Oil 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 the risk that
the proposed ARNIL Sale is delayed or not completed for any reason, the
consideration to be received pursuant to the ARNIL Sale, the anticipated
benefits of the ARNIL sale, 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 and Oil 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 in Antrim's Annual Information
Form for the year ended December 31, 2013. Readers are specifically referred to
the risk factors described under "Risk Factors" 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. 
The calculation of barrels of oil equivalent ("boe") is based on a
conversion rate of six thousand cubic feet of natural gas ("mcf") to
one barrel of crude oil ("bbl"). Boe's may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.  
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.  
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Antrim Energy Inc.
Stephen Greer
President & CEO
+ 1 403 264-5111
greer@antrimenergy.com
or
Antrim Energy Inc.
Anthony Potter
Chief Financial Officer
+ 1 403 264-5111
potter@antrimenergy.com
or
RFC Ambrian Limited
Sarah Wharry
+44 (0) 20 3440 6800
or
Buchanan
Tim Thompson/Tom Hufton
+44 (0) 20 7466 5000
antrim@buchanan.uk.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  ERN 
-0-
-0- Mar/28/2014 17:15 GMT
 
 
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