Antrim and Premier form Joint
Venture in the Fyne Area
- October 2010
Energy Inc. ("Antrim") is pleased to announce it has signed
an agreement with Premier Oil UK Limited ("Premier") to jointly
explore development options for the Fyne Area located in the UK Central
North Sea. Under the terms of the agreement, Premier will pay an initial
consideration of US$2 million to Antrim, and will have the option to
acquire a 39.9% interest in the Fyne Licence (Block 21/28a) in return
for a payment ("carry") up to US$50 million, less the initial
consideration, towards the pre-development and development costs of
the Fyne Field.
Antrim owns a 75% working interest in the Fyne Licence and a 100% working
interest in the adjacent Blocks 21/28b, 21/29c, 21/24b and 21/24c (the
Greater Fyne Area). The Agreement also provides Premier the option to
participate up to 50% alongside Antrim in a planned drilling programme
scheduled to start as early as the 2nd quarter 2011 in the Greater Fyne
Any licence assignment under the agreement will be subject to the usual
UK government approvals.
Block 21/28a was assigned proved plus probable reserves of 23.3 million
barrels of oil ("MMBO"), net 17.5 MMBO to Antrim, by independent
engineering consultants McDaniel & Associates Consultants Ltd. as
at 31 December 2009.
Antrim drilled two wells and three sidetracks in a 2008 appraisal programme
of the Fyne Field. Well 21/28a-10Z was tested at rates up to 4,000 barrels
of oil per day. Wells 21/28a-10Z and 21/28a-9Y were cased and are available
for use in the development of the Fyne Field. Initial drilling of the
Dandy and Area 4 fields, also on the Fyne Licence, was completed by
previous operators of Block 21/28a. The Fyne Field lies immediately
west - southwest of the Guillemot group of oil fields, which have produced
in excess of 70 MMBO to date. Fyne is also approximately 10 km east
of the recently announced Blakeney oil discovery in Block 21/27b and
35 km north of the recently announced Catcher oil discovery in Block
28/9, both of which have reservoirs of comparable age to those in the
Greater Fyne Area.
Stephen Greer, President and CEO of Antrim Energy, commented: "We
are very pleased to have entered into this agreement with Premier. This
is a major step towards the development of the significant reserves
already established in the Fyne Licence, and with Premier's recent experience
in the Catcher discovery, adds to the exploration potential of the surrounding
acted as advisors to Antrim Energy Inc.