Antrim Energy to JV on North Sea block with Dana
2005-03-21 10:12 MT - News Release
Mr. Stephen Greer reports
ANTRIM UK NORTH SEA FARM-OUT FINALIZED, BLOCK 211/22A, EAST SHETLAND BASIN
Antrim Energy Inc. has finalized a formal farm-out agreement relating to Antrim's North Sea block 211/22a. Under the agreement, Dana Petroleum PLC, a leading United Kingdom exploration and production company, will earn a 54.790-per-cent working interest in the north and western areas of Antrim's block in exchange for financing 100 per cent of the cost of an exploration well up to a gross cost of 5.75 million pounds sterling ($14-million). Antrim will retain a 21-per-cent working interest in this area of the block.
Block 211/22a is situated between the producing Cormorant and Dunlin oil fields which to date have produced over 400 million and 380 million barrels of oil respectively. Dana intends to drill the Clachnaben prospect in the northwest portion of the block as part of its 2005 North Sea drilling program. A discovery well drilled in 1976 on the northwest portion of the block (211/22a-1) tested oil at a rate of 1,280 barrels of oil per day.
Under the agreement, and following Dana's earning well, Antrim will increase its working interest from 75.794 per cent to 79 per cent in the southeast portion of the block which includes the prospective Osprey Ridge area. A discovery well (211/22a-3) drilled in 1984 on this portion of the block tested oil at 5,512 barrels of oil per day from a Jurassic reservoir. Antrim anticipates it will be appointed operator of the southeastern (Osprey Ridge) portion of the block.
We seek Safe Harbor.
K.D.
