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Antrim Energy cashed-up after clearing decks

Having exited North Sea projects the oil junior, which retains Irish acreage, has just shy of US$10mln in cash
Antrim Energy cashed-up after clearing decks
Antrim seeks an Irish farm-out and is also looking at M&A opportunities

Antrim Energy (LON:AEY, CVE:AEY) estimates it will have just shy of US$10mln of cash after clearing the decks of its North Sea business.

The company said today that following the decommissioning of the Fyne and Erne fields, in September, it has now received abandonment costs invoiced to its former joint venture partners.

With no debt and no more decommissioning costs the company says it is now in a strong financial position.

It estimates that the company’s unrestricted cash on hand, less trade payables, will amount to US$9.7mln.

The company retains a 100% working interest in high potential, early stage, acreage offshore Ireland following Kosmos Energy’s recent withdrawal from the venture. It is now planning to launch a farm-out process to bring in a new exploration partner for the project in Ireland’s Atlantic Margin.

A number of leads were previously identified by Kosmos and Antrim, after the major American exploration group shot 3D seismic.

“To move exploration of FEL 1/13 forward, Antrim will be seeking to farm- out a portion of its interest in the licence to a new operator,” the company said in a statement.

“Participants' interest in the recent Ireland 2015 Atlantic Margin Licensing Round was very strong and the results, when announced, may have a further impact on the farm-out process.”

Antrim added that it also plans to seek mergers and acquisition opportunities.

“Antrim will continue to assess opportunities based on, amongst other criteria, strategic fit, focus on near term appraisal / development, use of funds, transformative potential with upside potential for Antrim shareholders and current or near term cash flow,” it added.

On AIM, Antrim shares were up 5.5% trading at 1.43p each, and at that level the market valuation is just £2.63mln.

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