Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Antrim Energy soars on 4.5bn barrel estimate for Irish project

Having jumped over 150% in early deals Antrim’s AIM shares are at their highest since October.
Antrim Energy soars on 4.5bn barrel estimate for Irish project

Antrim Energy (LON:AEY) shares soared 140% after it estimated that the Skellig block, offshore Ireland, could contain as much as 4.5bn barrels of oil equivalent.

Antrim retains a 25% stake in the asset following its tie-up with the current operator Kosmos Energy.

Consultant McDaniel & Associates has assessed the block, which currently has 17 identified leads, and puts potential resources between 260mln (low estimate) and 4.5bn (high estimate) barrels – with a ‘best’ estimate of 1.1bn barrels.

The two largest leads were given a combined ‘best’ estimate of 482mln barrels.

Antrim also told investors that findings from a recently completed 3D seismic programme strongly indicate the presence of Lower Cretaceous slope fan and channel deposits akin to many of the recent Cretaceous oil discoveries offshore West Africa.

Having jumped over 150% in early deals Antrim’s AIM shares are at their highest since October.

Taken in the context of Antrim’s recent restructuring, the resource estimates are a reminder for investors that value and ‘upside’ remains within the group’s portfolio.

Antrim shelled off producing North Sea assets last year after delays, cost over-runs and oil swap derivatives diminished their profitability.

The Irish exploration asset was one of the few remaining interests – alongside an innovative marginal field project in collaboration with Enegi Oil (LON:ENEG) and Wood Group (LON:WG.).

The deal with Kosmos, agreed last April, now provides an opportunity for Antrim to reinvent its investment proposition.

Skellig spans 1,409 square kilometres and is located adjacent to the area where ExxonMobil and Providence Resources (LON:PVR) drilled the high profile Dunquin well last year.

Despite the picture Providence’s price paints, it has fallen 80% since last July’s well as speculators dumped stock, the Dunquin well has provided a number of positives for explorers in the region.

Dunquin failed to find hydrocarbons in commercial volumes, but did encounter indications that oil was present in the basin.

The intervening period has been relatively quiet in terms of exploration, with Kosmos’s 3D seismic programme over the three blocks being the only notable activity.

But, it is anticipated that Kosmos, which also farmed into two blocks licensed to Europa Oil & Gas (LON:EOG), will finalise and announce its offshore drilling plans soon – which may set out a new timetable of catalysts for the region.

As part of its deal with Kosmos, Europa secured contingent drilling commitments – potentially worth US$200mln – in exchange for 85% of the licences, while Antrim retained a slightly larger stake in Skellig without pre-arranging drilling options with the big-cap explorer.

In light of the apparently huge size of the potential prize, news from Kosmos of future drilling is likely to be very closely followed.

View full AEY profile View Profile

Antrim Energy Timeline

Related Articles

Green energy
April 10 2018
PowerHouse Energy has been busy over the past year, establishing its demonstration plant in the UK, signing deals to develop a hydrogen bus, and even trialling its technology in Qatar ahead of the 2022 FIFA World Cup
1537919971_Centrica-Lynn2_opt.jpg
00:30
The company expects its oil and gas exploration efforts will add to shareholder value.
picture of wind turbines
January 11 2018
The construction of more than 600 wind turbines was funded by securing US$1bn of financing during the year.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use