Antrim Energy Inc. Announces Prospective Resources in FEL 1/13 Republic of Ireland
29 July 2014 - 4:00PM
Marketwired Canada
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 company, is pleased to announce the
results of a prospective resources report for the Company's interests in
Frontier Exploration Licence 1/13 ("FEL 1/13") which includes blocks 44/4, 44/5
(part), 44/9, 44/10, 44/14 and 44/15 (collectively the "Skellig Block", Antrim
25% working interest) offshore Ireland.
These prospective resources were evaluated by McDaniel & Associates Consultants
Ltd. ("McDaniel") in accordance with National Instrument 51-101 in a report
dated effective June 30, 2014. Prospective resources were assigned to 17 leads
within the Skellig Block. The report estimates a total unrisked prospective
resource potential of 1.1 billion barrels of oil equivalent ('Best Estimate') on
the licence. The report further assigns a best estimate of 482 million barrels
of oil equivalent (42.7% of the total) to two of the primary leads currently
designated Leads "C" and "M-3". Details of these estimates are provided in the
tables below.
Results from the recently acquired 3-D seismic programme strongly indicate 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.
The following table provides an aggregate summary of the Prospective Resources
for the 17 independent leads evaluated within the entire property:
Prospective Resources (1) (2) (3) (4) (5)
Total All Leads Property Gross - Unrisked Property Antrim
----------------------------------
Risked Risked
Low Best High Mean Mean
Estimate Estimate Estimate Estimate Estimate
----------------------------------------------------------------------------
Crude Oil (Mbbl) 54,533 260,206 1,108,434 59,396 14,849
Natural Gas (MMcf) 1,157,006 4,683,844 17,883,056 992,865 248,216
Condensate (Mbbl) 12,864 87,128 429,070 22,330 5,582
Cumulative Thousand
Barrels of Oil
Equivalent (Mboe) 260,231 1,127,975 4,518,014 247,203 61,800
The following table provides an aggregate summary of the Prospective Resources
for the two largest independent leads ("C" and "M-3") which represent 42.7% of
the total unrisked property Prospective Resources (Best Estimate boe) or 46.5%
of the total risked mean property boe of Prospective Resources.
Prospective Resources (1) (2) (3) (4) (5)
Lead C and
Lead C and M-3 Lead C and M-3 - Unrisked M-3 Antrim
----------------------------------
Risked Risked
Low Best High Mean Mean
Estimate Estimate Estimate Estimate Estimate
----------------------------------------------------------------------------
Crude Oil (Mbbl) 26,732 126,955 545,627 31,908 7,977
Natural Gas (MMcf) 481,567 1,918,787 7,295,348 439,970 109,993
Condensate (Mbbl) 5,261 35,244 173,359 9,661 2,415
Cumulative Thousand
Barrels of Oil
Equivalent (Mboe) 112,255 481,996 1,934,878 114,896 28,724
Notes:
(1) There is no certainty that any portion of the prospective resources will
be discovered. If discovered, there is no certainty that it will be
economically viable or technically feasible to produce any portion of
the resources.
(2) The columns marked as "Unrisked" have not been risked for chance of
discovery or chance of development. The columns marked as "Risked" have
been risked for chance of discovery, but have not been risked for chance
of development. If a discovery is made, there is no certainty that it
will be developed or, if it is developed, there is no certainty as to
the timing of such development.
(3) The "Antrim Risked Mean Estimate" reflects Antrim`s 25% working interest
share of: the gross prospective resource estimates shown in the
"Property Risked Mean Estimate" column (Table 1); or the combined
prospective resource estimates shown for the subsidiary "Lead C and M-3
Risked Mean Estimate" (Table 2). All other columns in the above tables
reflect the gross 100% prospective resources of the Licence (of which
Antrim's current working interest is 25%).
(4) Gas was converted to barrels of oil equivalent (`BOE`) at a ratio of 6
Mcf to 1 bbl.
(5) The total risked mean is equal to the aggregate sum of the unrisked mean
(arithmetic average) estimate for each lead multiplied by the chance of
discovery for the lead.
Antrim acquired a Licencing Option over the Skellig area in 2011. A 75% interest
in the Option was subsequently farmed out to Kosmos Energy Ltd. ("Kosmos") and
converted into a Frontier Exploration Licence ("FEL 1-13") in 2013. In return
for the farm-out, Kosmos agreed to carry Antrim for the full costs of a 1,000
km2 3-D seismic programme and re-imbursement of a portion of the costs
previously incurred on the licence. The 3-D seismic programme was completed in
2013 and forms the basis of this new resource assessment.
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 Stock Exchange's Alternative Investment
Market (AEY). Visit www.antrimenergy.com for more information.
Notes on Oil and Gas Disclosure
Prospective resources are defined as those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from undiscovered accumulations
by application of future development projects. Prospective resources have both
an associated chance of discovery and a chance of development. Prospective
resources are further subdivided in accordance with the level of certainty
associated with recoverable estimates assuming their discovery and development
and may be sub-classified based on project maturity.
Estimates of resources always involve uncertainty, and the degree of uncertainty
can vary widely between accumulations/projects and over the life of a project.
Consequently, estimates of resources should generally be quoted as a range
according to the level of confidence associated with the estimates. An
understanding of statistical concepts and terminology is essential to
understanding the confidence associated with resources definitions and
categories. The range of uncertainty of estimated recoverable volumes may be
represented by either deterministic scenarios or a probability distribution.
Resources should be provided as low, best and high estimates, as follows:
Low Estimate - This is considered to be a conservative estimate of the quantity
that will actually be recovered. It is likely that the actual remaining
quantities recovered will exceed the low estimate. If probabilistic methods are
used, there should be at least a 90 percent probability (P90) that the
quantities actually recovered will equal or exceed the low estimate.
Best Estimate - This is considered to be the best estimate of the quantity that
will actually be recovered. It is equally likely that the actual remaining
quantities recovered will be greater or less than the best estimate. If
probabilistic methods are used, there should be at least a 50 percent
probability (P50) that the quantities actually recovered will equal or exceed
the best estimate.
High Estimate - This is considered to be an optimistic estimate of the quantity
that will actually be recovered. It is unlikely that the actual remaining
quantities recovered will exceed the high estimate. If probabilistic methods are
used, there should be at least a 10 percent probability (P10) that the
quantities actually recovered will equal or exceed the high estimate.
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.
The resource estimates contained herein are estimates only and the actual
results may be greater than or less than the estimates provided herein. The
estimates of resources for individual leads may not reflect the same confidence
level as estimated resources for all leads, due to the effects of aggregation.
The total prospective resources presented are based on the arithmetic
aggregation of all of the leads, which will result in a greater than 90 percent
chance of exceeding the overall Low Estimate total and less than a 10 percent
chance of exceeding the overall High Estimate Total.
Positive aspects of exploration in the Skellig Block are: (I) similarity of
basin geology to geology of the northern part of the Porcupine Basin and the
Canadian North Atlantic basins on the conjugate margin where hydrocarbon
discoveries have been made; and (II) a working petroleum system with a proven
Jurassic source and the possibility of mature Cretaceous shales. Potential
concerns of exploration in the Skellig Block are: (I) the presence of
significant quantities of reservoir quality sands at depths of 4,000 to 6,000
metres subsea; (II) lateral seals in Cretaceous stratigraphic traps; and (III)
hydrocarbon migration into potential Cretaceous reservoirs.
Additionally, this press release uses certain abbreviations as follows:
Oil and Natural Gas Liquids Natural Gas
----------------------------------------------------------------------------
Bbls barrels Mcf thousand cubic feet
Mbbls thousand barrels MMcf million cubic feet
Mboe thousand barrels of oil
equivalent
In accordance with AIM guidelines, Mr. Kevin Morrison, P.Geo., and Exploration
Manager for Antrim Energy, is the qualified person that has reviewed the
technical information contained in this press release. Mr. Morrison has over 30
years operating experience in the upstream oil and gas industry.
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 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 contains specific forward-looking statements
and information pertaining to estimates of the quantity of oil, natural gas
liquids ("NGL") and natural gas in the Skellig Block. Statements relating to
"resources" are deemed to be forward-looking statements, as they involve the
implied assessment based on certain estimates and assumptions, that the
resources described can be profitably produced in the future. The estimates of
remaining recoverable prospective resources have been risked for chance of
discovery, but have not been risked for chance of development. If a discovery is
made, there is no certainty that it will be developed or, if it is developed,
there is no certainty as to the timing of such development.
With respect to forward-looking statements contained in this press release,
Antrim has made various assumptions, including the assumption that the
prospective resources described herein will be discovered and developed. 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 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 accuracy of oil and gas
resource estimates as they are affected by the Antrim's exploration and
development drilling.
Many of these risk factors, other specific risks, uncertainties and material
assumptions are discussed in further detail throughout this press release and in
Antrim's Annual Information Form for the year ended December 31, 2013. Readers
are specifically referred to the risk factors described in this press release
under "Risk Factors" 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 www.sedar.com. Readers are cautioned that this list of risk factors
should not be construed as exhaustive.
FOR FURTHER INFORMATION PLEASE CONTACT:
Antrim Energy Inc.
Stephen Greer
President & CEO
+ 1 403 264-5111
greer@antrimenergy.com
Antrim Energy Inc.
Anthony Potter
Chief Financial Officer
+ 1 403 264-5111
potter@antrimenergy.com
www.antrimenergy.com
RFC Ambrian Limited
James Biddle
+44 (0) 20 3440 6800