Antrim Energy (fka ATGYF)

[kraftdinner]

Antrim to start drilling U.K. North Sea in September


2005-07-14 03:23 MT - News Release

Mr. Stephen Greer reports

ANTRIM UPDATES UK NORTH SEA OPERATIONS; THE BREDFORD DOLPHIN, SEMI-SUBMERSIBLE DRILLING RIG, HAS BEEN CONTRACTED TO DRILL CLACHNABEN, IN THE NORTHWEST PORTION OF BLOCK 211/22A IN THE UK NORTH SEA

Antrim Energy Inc. is releasing an update on its upcoming drilling program in the United Kingdom North Sea.

The company expects drilling operations to commence in mid-September, 2005, subject to regulatory and other approvals, on Antrim's United Kingdom North Sea Prometheus prospect, blocks 42/21 and 42/22, in the Southern Gas basin. The Prometheus prospect will target the prolific Permian Leman sandstone close to and on trend with the Ravenspurn gas fields that contain at least 1.6 trillion cubic feet of initial recoverable gas reserves. The Prometheus well, which is expected to cost approximately 5.5 million pounds sterling ($12.0-million (Canadian)), will be drilled to target depth at no cost to Antrim. Antrim's interest at the conclusion of the drilling operation will be 17.5 per cent.

Drilling operations on Antrim's second well, Clachnaben, in the northern sector of the United Kingdom North Sea, are expected to commence in October, 2005. The Clachnaben well will target the oil prone Jurassic Brent sandstone in block 211/22a, adjacent to the Cormorant oil field and related export infrastructure. Dana Petroleum PLC, the licence operator, has contracted the Bredford Dolphin semi-submersible drilling rig to drill the well. If drilling is successful, it is envisaged that a fast-track subsea tie-back development would be pursued jointly with the adjacent 211/22a-1 discovery which was drilled in 1977 and flowed 1,280 barrels per day of 31-degree API oil. At that time, the 211/22a-1 well was plugged and abandoned as being uneconomic. Under a farm-out agreement with Dana, the Clachnaben well will be drilled to the target formation at no cost to Antrim. Antrim's interest at the conclusion of the drilling operation will be 21 per cent.

Under the Dana farm-out agreement, and following the conclusion of drilling operations on 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 per day from the Jurassic Brent reservoir. This well was also plugged and abandoned as it was considered uneconomic at that time.

Antrim's third drilling operation in the United Kingdom North Sea, the Bennachie prospect, is also expected to commence in the fourth quarter of 2005. The Bennachie well, operated by Nexen Petroleum U.K. Limited, will target the Jurassic Fulmar sandstone approximately 1.5 kilometres from the original Bennachie discovery well 21/15a-2 which tested high-quality 39-degree API oil at a stabilized rate of 4,364 barrels per day and 2.67 million cubic feet per day of associated gas. Antrim will earn a 25-per-cent interest in the licence, including the original Bennachie discovery well. Gross drilling costs are expected to be approximately 7.8 million pounds sterling ($17.4-millionn (Canadian)).

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