Antrim aims to move Fyne forward

Antrim Energy is reviewing development options for the Fyne heavy oil field in the UK central North Sea.

Offshore staff

CALGARY, Alberta -- Antrim Energy is reviewing development options for the Fyne heavy oil field in the UK central North Sea.

The Fyne license in block 21/28a contains proven and probable reserves estimated at 17.5 MMbbl net to Antrim. The company also has a 100% interest in four adjacent blocks comprising the Greater Fyne Area. Antrim is in talks with potential farm-in partners to supply funding which would be used to take Fyne into production.

Antrim has held discussions with FPSO providers and owners of offshore infrastructure in the area in order to determine the best route forward. It has performed an FPSO pre-qualification process and commissioned engineering studies, which have identified an alternative subsea tieback to a third-party host facility.

The production system is being designed to handle up to 20,000 b/d of oil from Fyne, with potential capacity bolt-ons to take volumes from satellite fields.

In addition to this program, Antrim has drawn up five high priority drilling prospects on its Greater Fyne Area licenses. It expects to submit a field development plan and schedule drilling of these wells once a transaction with an industry partner for the Fyne development is completed.

Earlier this year, Antrim signed a Conditional Letter Agreement with Valiant Petroleum to sell a 30% interest in the Causeway discovery in the northern North Sea. In exchange, Antrim would receive a carried contribution of up to $21.75 million towards the field’s development costs.

Completion of the transaction is subject to conditions, including sanction by the UK Department of Energy and Climate Change of the Causeway development plan which Valiant, as the new operator, has yet to submit. Antrim has transferred operatorship of the field to Valiant, and will retain a 35.5% working interest. It expects first production from Causeway in late 2011.

08/17/2010

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