Aug 26, 2015 - 17:54 ET Antrim Energy Inc. Announces 2015 Second Quarter Results

CALGARY, ALBERTA--(Marketwired - Aug. 26, 2015) -


Antrim Energy Inc. ("Antrim" or "the Company") (TSX VENTURE:AEN)(AIM:AEY), an international oil and gas exploration company, today reported its financial results for the three and six month period ended June 30, 2015.

All financial figures are unaudited and in US dollars unless otherwise noted.


  • Commencement of four well abandonment program in United Kingdom Central North Sea
  • Significant cost reduction expected from summer 2015 abandonment program
  • Continue to evaluate new opportunities for transformative upside potential
  • Strong financial position including cash at June 30, 2015 of US $13.5 million
  • Large reduction in ongoing G&A costs


Over the past year the Company has sought and evaluated a number of international opportunities with the objective of providing shareholders with exposure to attractive growth opportunities with an emphasis on existing or near term oil and gas production and cash flow. It is the Company's view that the falling commodity price environment should lead to an increase in M&A activity within the junior E&P sector. The Company's robust balance sheet and long-term potential puts it in a strong position to benefit from industry consolidation. So far this year, much of the anticipated increase in M&A has not occurred as sellers or those in need of capital have been reluctant to transact at what they perceive to be the bottom or near bottom of the cycle and those with capital to invest have been either unwilling to take additional risk or pay a potential premium in a volatile and still declining market environment.

Along with others who believe parties in the sector are only now beginning to adjust their expectations, we remain hopeful that a transformative transaction can be concluded. Completion of the Fyne and Erne abandonment programme currently underway and subsequent reimbursement by former joint venture partners of their portion of these costs will provide clarity as to Antrim's financial position and its contribution towards any future M&A transaction.


Frontier Exploration Licence 1-13, Antrim 25%

In 2013, Kosmos Energy Ltd. ("Kosmos") farmed-in to Antrim's Licencing Option over the Skellig Block and assumed operatorship of the block. Kosmos subsequently acquired 3-D seismic, results from which reinforced Antrim's interpretation based on 2-D seismic and strongly indicated the presence of Lower Cretaceous slope fan and channel deposits similar in geometry and seismic character to many of the recent Cretaceous oil discoveries offshore West Africa.

In December 2014 Kosmos prepared a prospect inventory which includes several leads previously identified and highlights three prospects including two tilted Jurassic fault blocks and a Cretaceous submarine fan. Two of the three prospects were included as leads in the prospective resources evaluated by McDaniel & Associates Consultants Ltd. ("McDaniel") in accordance with National Instrument 51-101 in a report dated effective June 30, 2014. In the McDaniel Report, prospective resources were assigned to 17 leads within the Skellig Block, further details of which are included in Antrim's AIF for the year ended December 31, 2014. A second Jurassic prospect identified by Kosmos has yet to be reviewed by McDaniel pending receipt of additional information. Additional work planned for 2015 to mitigate drilling risk among the top three identified prospects includes trace inversion, AVO mapping and modeling, spectral decomposition and attribute extraction.

FEL 1-13 has a 15 year term, with an initial three-year term followed by three four-year terms. At least three months before the end of the initial term a work programme for the second term must be proposed. That programme must include the drilling of an exploration well. At the end of the initial three-year term (July 4, 2016), 25% of the acreage must be relinquished.

Fyne Licence

P077 Block 21/28a - Fyne, Antrim 100%

United Kingdom Seaward Licences require licensees to permanently abandon all suspended wells prior to licence expiry. In June 2015 the Company entered into a contract with Offshore Installation Services Ltd. ("OIS") to permanently plug and abandon three suspended wells on the Fyne Licence and one suspended well on the Erne Licence in the United Kingdom Central North Sea. The well abandonment campaign commenced on July 8, 2015 including six Central North Sea wells from another operator allowing Antrim to share certain common costs offering significant cost savings. The first phase of the 10 well abandonment program was completed on August 15, 2015 and the final phase is expected to be completed early September 2015. The estimated total gross cost for abandonment of Antrim's four wells is £5.0 million ($7.9 million), with the estimated net cost to Antrim totaling £2.1 million ($3.25 million).

The Company is in discussion with the Oil and Gas Authority (OGA), formerly DECC, with respect to relinquishment and possible reapplication for the licence. The carrying value of the Fyne Licence at June 30, 2015 is $nil (December 31, 2014 - $nil).

Erne Licence

P1875 Block 21/29d - Erne, Antrim 50%

Previous discoveries on the Erne Licence are not commercial on their own, but may be economic to develop as tie-backs to an adjacent production facility if such a facility were available. The carrying value of the Erne Licence at June 30, 2015 is $nil (December 31, 2014 - $nil).

Financial Discussion of Continuing Operations

Three Months Ended Six Months Ended
June 30 June 30
($000's except per share amounts) 2015 2014 2015 2014
Financial Results
Cash flow used in operations (1) (857 ) (2,510 ) (388 ) (3,689 )
Cash flow used in operations per share (1) (0.00 ) (0.01 ) (0.00 ) (0.02 )
Net income (loss) - continuing operations 812 (3,666 ) 1,273 (5,204 )
Net income (loss) per share - basic, continuing operations 0.00 (0.02 ) 0.01 (0.03 )
Net income (loss) 812 (223 ) 1,273 (8,684 )
Net income (loss) per share - basic 0.00 (0.00 ) 0.01 (0.05 )
Total assets 15,611 19,430 15,611 19,430
Working capital 10,423 17,512 10,423 17,512
Capital expenditures - continuing operations 58 53 86 195
Common shares outstanding
End of period 184,731 184,731 184,731 184,731
Weighted average - basic 184,731 184,731 184,731 184,731
Weighted average - diluted 184,731 184,731 184,731 184,731
(1) Cash flow used in operations and cash flow used in operations per share are Non-IFRS Measures. Refer to "Non-IFRS Measures" in Management's Discussion and Analysis.

Cash Flow and Net Income (Loss) from Continuing Operations

In the first half of 2015 cash flow used in operations was $0.4 million compared to cash flow used in operations of $3.7 million for the corresponding period in 2014. Cash flow used in operations decreased due to lower G&A costs and a $0.9 million foreign exchange gain in the first half of 2015 as a result of a significant decline in the period in the value of the Canadian dollar relative to the US dollar. Excluding foreign exchange gains and losses, cash flow used in operations in the first half of 2015 was $1.3 million compared to $3.2 million for the corresponding period in 2014.

In the first half of 2015, Antrim had net income from continuing operations of $1.3 million compared to a net loss from continuing operations of $5.2 million for the corresponding period in 2014. Net income increased due to lower expected decommissioning obligations, foreign exchange gains and lower general and administrative costs.

Financial Resources and Liquidity

Antrim had a working capital surplus at June 30, 2015 of $10.4 million compared to a working capital surplus of $15.1 million as at December 31, 2014. Working capital decreased due to classification of decommissioning obligations to be incurred in 2015 under the current four well abandonment programme as a current liability, general and administrative expenses and actual decommissioning costs incurred in the period.


The Company plans to look for additional M&A opportunities and assess those opportunities based on, amongst other criteria, strategic fit, focus on near term appraisal / development, use of funds, transformative potential with upside potential for Antrim shareholders and current or near term cash flow.

The board of Antrim views the Company's strong financial position as a competitive advantage in the current volatile oil price environment and the Company will continue to seek ways to reduce the Company's G&A costs to further protect its financial position. G&A costs in 2015 are budgeted to be approximately 50% of G&A in 2014.

About Antrim

Antrim Energy Inc. is a Canadian, Calgary based junior oil and gas exploration company with assets in the UK North Sea and Ireland. Antrim is listed on the TSX Venture Exchange (AEN) and on the London AIM market (AEY). Antrim's second quarter 2015 interim report (including management's discussion and analysis and consolidated financial statements), is available on SEDAR and our website. Visit for more information.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Forward-Looking and Cautionary Statements

This press release contains 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 should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this press release and Antrim does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws.

This press release may contain specific forward-looking statements and information pertaining to Antrim's plans for exploring and developing its licences, including exploration of the Skellig block, commodity prices, foreign currency exchange rates and interest rates, capital expenditure programs and other expenditures, 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, Antrim has made assumptions regarding: Antrim's ability to obtain additional drilling rigs and other equipment in a timely manner, obtain regulatory approvals, the consideration received in the ARNIL Sale will not change materially as a result of post-closing adjustments, the level of future capital expenditure required to exploit and develop resources, 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, 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, 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 capital requirements, Antrim's reliance on industry partners for the development and decommissioning 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 that the consideration from the ARNIL Sale is reduced as a result of post-closing adjustments, the risk that well abandonment programmes take longer or are more expensive than anticipated, the risk of adverse results from litigation and the accuracy of oil and gas resource estimates as they are affected by the Antrim's exploration and development drilling. 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, Ireland, 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 MD&A and in Antrim's Annual Information Form for the year ended December 31, 2014. Readers are specifically referred to the risk factors described in Antrim's MD&A under "Risks and Uncertainties" 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 Readers are cautioned that this list of risk factors should not be construed as exhaustive.

In accordance with AIM guidelines, Mr. Murray Chancellor, C.Eng., MICE and Managing Director, United Kingdom for Antrim, is the qualified person that has reviewed the technical information contained in this MD&A. Mr. Chancellor has over 25 years operating experience in the upstream oil and gas industry.


Anthony Potter
President, Chief Executive Officer and
Chief Financial Officer
Antrim Energy Inc.
Telephone: + 1 403 264-5111

RFC Ambrian Limited
Samantha Harrison
Telephone: +44 (0) 20 3440 6800