Antrim, Partners Sign Farm-Out Agreement with TAQA


Antrim Energy Inc. announced that Antrim, along with its current licence partners, has signed a farm-out agreement with TAQA Bratani Limited relating to UKCS Licence P201 Block 211/22a North West Area (Antrim 21%) whereby TAQA has agreed to drill an exploration well to earn an interest in the licence.

Under the terms of the agreement, and subject to the approval of the UK Department of Energy and Climate Change (“DECC”), TAQA will assume operatorship and drill an exploration well on a prospect in the southern area of the block from the TAQA-operated Cormorant North Platform. The well will target the Jurassic Brent sequence of sandstones at a projected drilling depth of 16,900 feet, less than two kilometres east of the Cormorant North Field. The well, which is expected to spud in the first half of 2012, will be completely funded by TAQA.

If successful, TAQA will earn 60% interest in the southern area of the block and 35% interest in the northern part. Antrim’s remaining interests will be 8.4% in the Contender sub-area and 13.65% in the Kerloch sub-area.

Block 211/22a North West Area is located approximately five kilometres west of Antrim’s Causeway development in the UK Northern North Sea. In 2007, Antrim and partners drilled the Kerloch discovery well 211/22a-10 that penetrated an oil column approximately 116 feet thick in the Jurassic Ness Formation. The Kerloch well was suspended in early 2008 to allow potential re-entry and future use.

Stephen Greer, Antrim’s CEO commented: “A successful Contender exploration well could be production tested using the existing facilities on the Cormorant North Platform and tied in at relatively low cost to existing long term production facilities without additional subsea engineering.”

Source: Antrim Energy, August 25, 2011