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Antrim Energy Inc. Announces Prospective Resources in FEL 1/13 Republic of Ireland
CALGARY, ALBERTA--(Marketwired - July 29, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.
Antrim Energy Inc. ("Antrim" or "the Company") (AEN.TO)(AEY.L), an international oil and gas exploration company, is pleased to announce the results of a prospective resources report for the Company's interests in Frontier Exploration Licence 1/13 ("FEL 1/13") which includes blocks 44/4, 44/5 (part), 44/9, 44/10, 44/14 and 44/15 (collectively the "Skellig Block", Antrim 25% working interest) offshore Ireland.
These prospective resources were evaluated by McDaniel & Associates Consultants Ltd. ("McDaniel") in accordance with National Instrument 51-101 in a report dated effective June 30, 2014. Prospective resources were assigned to 17 leads within the Skellig Block. The report estimates a total unrisked prospective resource potential of 1.1 billion barrels of oil equivalent ('Best Estimate') on the licence. The report further assigns a best estimate of 482 million barrels of oil equivalent (42.7% of the total) to two of the primary leads currently designated Leads "C" and "M-3". Details of these estimates are provided in the tables below.
Results from the recently acquired 3-D seismic programme strongly indicate the presence of Lower Cretaceous slope fan and channel deposits similar in geometry and seismic character to many of the recent Cretaceous oil discoveries offshore West Africa.
The following table provides an aggregate summary of the Prospective Resources for the 17 independent leads evaluated within the entire property:
Prospective Resources (1) (2) (3) (4) (5) | |||||
Total All Leads | Property Gross - Unrisked | Property | Antrim | ||
Low | Best | High | Risked | Risked | |
Crude Oil (Mbbl) | 54,533 | 260,206 | 1,108,434 | 59,396 | 14,849 |
Natural Gas (MMcf) | 1,157,006 | 4,683,844 | 17,883,056 | 992,865 | 248,216 |
Condensate (Mbbl) | 12,864 | 87,128 | 429,070 | 22,330 | 5,582 |
Cumulative Thousand Barrels of Oil Equivalent (Mboe) | 260,231 | 1,127,975 | 4,518,014 | 247,203 | 61,800 |
The following table provides an aggregate summary of the Prospective Resources for the two largest independent leads ("C" and "M-3") which represent 42.7% of the total unrisked property Prospective Resources (Best Estimate boe) or 46.5% of the total risked mean property boe of Prospective Resources.
Prospective Resources (1) (2) (3) (4) (5) | |||||
Lead C and M-3 | Lead C and M-3 - Unrisked | Lead C and M-3 | Antrim | ||
|
|
| Risked | Risked | |
Crude Oil (Mbbl) | 26,732 | 126,955 | 545,627 | 31,908 | 7,977 |
Natural Gas (MMcf) | 481,567 | 1,918,787 | 7,295,348 | 439,970 | 109,993 |
Condensate (Mbbl) | 5,261 | 35,244 | 173,359 | 9,661 | 2,415 |
Cumulative Thousand Barrels of Oil Equivalent (Mboe) | 112,255 | 481,996 | 1,934,878 | 114,896 | 28,724 |
Notes: | |
(1) | There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be economically viable or technically feasible to produce any portion of the resources. |
(2) | The columns marked as "Unrisked" have not been risked for chance of discovery or chance of development. The columns marked as "Risked" have been risked for chance of discovery, but have not been risked for chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development. |
(3) | The "Antrim Risked Mean Estimate" reflects Antrim`s 25% working interest share of: the gross prospective resource estimates shown in the "Property Risked Mean Estimate" column (Table 1); or the combined prospective resource estimates shown for the subsidiary "Lead C and M-3 Risked Mean Estimate" (Table 2). All other columns in the above tables reflect the gross 100% prospective resources of the Licence (of which Antrim's current working interest is 25%). |
(4) | Gas was converted to barrels of oil equivalent (`BOE`) at a ratio of 6 Mcf to 1 bbl. |
(5) | The total risked mean is equal to the aggregate sum of the unrisked mean (arithmetic average) estimate for each lead multiplied by the chance of discovery for the lead. |
Antrim acquired a Licencing Option over the Skellig area in 2011. A 75% interest in the Option was subsequently farmed out to Kosmos Energy Ltd. ("Kosmos") and converted into a Frontier Exploration Licence ("FEL 1-13") in 2013. In return for the farm-out, Kosmos agreed to carry Antrim for the full costs of a 1,000 km2 3-D seismic programme and re-imbursement of a portion of the costs previously incurred on the licence. The 3-D seismic programme was completed in 2013 and forms the basis of this new resource assessment.
About Antrim
Antrim Energy Inc. is a Canadian Calgary-based junior oil and gas Exploration Company with assets in the UK North Sea and Ireland. Antrim is listed on the TSX Venture Exchange (AEN) and on the London Stock Exchange's Alternative Investment Market (AEY). Visit www.antrimenergy.com for more information.
Notes on Oil and Gas Disclosure
Prospective resources are defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.
Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. Consequently, estimates of resources should generally be quoted as a range according to the level of confidence associated with the estimates. An understanding of statistical concepts and terminology is essential to understanding the confidence associated with resources definitions and categories. The range of uncertainty of estimated recoverable volumes may be represented by either deterministic scenarios or a probability distribution. Resources should be provided as low, best and high estimates, as follows:
Low Estimate - This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
Best Estimate - This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
High Estimate - This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
The calculation of barrels of oil equivalent ("boe") is based on a conversion rate of six thousand cubic feet of natural gas ("mcf") to one barrel of crude oil ("bbl"). Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The resource estimates contained herein are estimates only and the actual results may be greater than or less than the estimates provided herein. The estimates of resources for individual leads may not reflect the same confidence level as estimated resources for all leads, due to the effects of aggregation. The total prospective resources presented are based on the arithmetic aggregation of all of the leads, which will result in a greater than 90 percent chance of exceeding the overall Low Estimate total and less than a 10 percent chance of exceeding the overall High Estimate Total.
Positive aspects of exploration in the Skellig Block are: (I) similarity of basin geology to geology of the northern part of the Porcupine Basin and the Canadian North Atlantic basins on the conjugate margin where hydrocarbon discoveries have been made; and (II) a working petroleum system with a proven Jurassic source and the possibility of mature Cretaceous shales. Potential concerns of exploration in the Skellig Block are: (I) the presence of significant quantities of reservoir quality sands at depths of 4,000 to 6,000 metres subsea; (II) lateral seals in Cretaceous stratigraphic traps; and (III) hydrocarbon migration into potential Cretaceous reservoirs.
Additionally, this press release uses certain abbreviations as follows:
Oil and Natural Gas Liquids | Natural Gas | ||
Bbls | barrels | Mcf | thousand cubic feet |
Mbbls | thousand barrels | MMcf | million cubic feet |
Mboe | thousand barrels of oil | ||
In accordance with AIM guidelines, Mr. Kevin Morrison, P.Geo., and Exploration Manager for Antrim Energy, is the qualified person that has reviewed the technical information contained in this press release. Mr. Morrison has over 30 years operating experience in the upstream oil and gas industry.
Forward-Looking and Cautionary Statements
This press release contains certain forward-looking statements and forward-looking information which are based on Antrim's internal reasonable expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information. Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting", "forecast", "achieve" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements and information. Antrim believes that the expectations reflected in those forward-looking statements and information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements and information included in this press release and any documents incorporated by reference herein should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this press release or the particular document incorporated by reference herein and Antrim does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws.
In particular, this press release contains specific forward-looking statements and information pertaining to estimates of the quantity of oil, natural gas liquids ("NGL") and natural gas in the Skellig Block. Statements relating to "resources" are deemed to be forward-looking statements, as they involve the implied assessment based on certain estimates and assumptions, that the resources described can be profitably produced in the future. The estimates of remaining recoverable prospective resources have been risked for chance of discovery, but have not been risked for chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.
With respect to forward-looking statements contained in this press release, Antrim has made various assumptions, including the assumption that the prospective resources described herein will be discovered and developed. In respect to these assumptions, the reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.
Antrim's actual results could differ materially from those anticipated in these forward-looking statements and information as a result of assumptions proving inaccurate and of both known and unknown risks, including risks associated with the exploration for and development of oil and natural gas reserves such as the risk that drilling operations may not be successful, unanticipated delays with respect to the development of Antrim's properties, operational risks and liabilities that are not covered by insurance, volatility in market prices for oil, NGLs and natural gas, changes or fluctuations in oil, NGLs and natural gas production levels, changes in foreign currency exchange rates and interest rates, the ability of Antrim to fund its capital requirements, Antrim's reliance on industry partners for the development of some of its properties, risks associated with ensuring title to the Company's properties, liabilities and unexpected events inherent in oil and gas operations, including geological, technical, drilling and processing problems, the accuracy of oil and gas resource estimates as they are affected by the Antrim's exploration and development drilling.
Many of these risk factors, other specific risks, uncertainties and material assumptions are discussed in further detail throughout this press release and in Antrim's Annual Information Form for the year ended December 31, 2013. Readers are specifically referred to the risk factors described in this press release under "Risk Factors" and in other documents Antrim files from time to time with securities regulatory authorities. Copies of these documents are available without charge from Antrim or electronically on the internet on Antrim's SEDAR profile at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
