Antrim agrees terms for North Sea Fyne floater

Antrim Energy (LON:AEY) has signed a heads of terms agreement with Hummingbird Production, a subsidiary of Teekay Corp., for an option to lease the FPSO Hummingbird Spirit for the development of the Fyne field in UK central North Sea block 21/28a.

Offshore staff

CALGARY, Canada – Antrim Energy (LON:AEY) has signed a heads of terms agreement with Hummingbird Production, a subsidiary of Teekay Corp., for an option to lease the FPSO Hummingbird Spirit for the development of the Fyne field in UK central North Sea block 21/28a.

Fully termed agreements will be progressed, subject to UK government consent to thefield development plan for Fyne, which Antrim expects to submit in January. Depending on the redeployment of the FPSO from its current location, first oil could flow from Fyne in 4Q 2014.

A recent report by McDaniel and Associates Consultants, which incorporated results from a well drilled earlier this year in the East Fyne area, estimated proved plus probable oil reserves in the Fyne field at 11.7 MMbbl.

Antrim’s working interest in Fyne is 100%, although this is contingent on execution of final completion documents for the withdrawal of former partners Premier Oil UK and First Oil Expro.

Stephen Greer, Antrim president and CEO, said: “Development of the Fyne area…has been hindered for some time due to the lack of commercial infrastructure and export route. TheHummingbird Spirit resolves that issue, not only for the Fyne field, but potentially for other Antrim assets in the area and nearby stranded assets of other operators.”

In the northern UK sector, oil production has started from theValiant-operated Causeway field in block 211/23d (Antrim 35.5%). The field has been tied back to the TAQA-operated North Cormorant platform.

Production is currently at around 4,500 b/d on a 53% choke. Initial rates are currently being impacted by clean-up and commissioning issues due to the long horizontal trajectory of the well. The installed electric submersible pumps should lift output during the first half of 2013.

Next-phase work on Causeway and the nearbyFionn oil field should start early in 2013 and be completed by mid-year.

11/13/2012

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