Antrim Provides UK North Sea Operations Update

Antrim announces the results of its exploration drilling in UK Central North Sea Licence P1784 Block 21/7b as well as providing an operational update on its other UKNS activities.

 The Cyclone well in UK Block 21/7b (Antrim working interest 30%) has reached a total depth of 6,076 feet and is being plugged and abandoned. The well encountered 105 feet of very porous and permeable Tertiary Cromarty sands. The well logs, however, identified only residual oil, suggesting that the trap, which was identified as the critical risk factor, was breached. Work will continue on the licence to evaluate the remaining prospectivity in light of the Cyclone well result.

Production at the Causeway Field in UK Northern North Sea Licence P1383 Block 211/23d (Antrim working interest 35.5%), which commenced in November 2012 at production well 211/23d-17Z (as announced November 12, 2012), is continuing in cleanup mode. Average production in November was approximately 4,800 barrels of oil per production day (gross), under primary depletion and restricted choke conditions. Well 211/23d-18, drilled in 2008, will be used for water injection, and injection lines are in place. Completion of the injection well and startup of water injection is planned for mid-2013. Electrical submersible pumps have been installed in the production well and are also planned for startup in mid-2013.

Completion operations continue at well 211/21-N94 in the Cormorant East Field in UK Northern North Sea Licence P201 Block 211/22a Contender Area (Antrim working interest 8.4%). The well was successfully drilled from the North Cormorant platform in August – October 2012, encountering 73 feet of net oil pay in the Tarbert Formation of the Jurassic Brent Group. As announced November 21, 2012, DECC has approved a FDP for the Cormorant East Field, with first oil expected before the end of 2012. The field will initially be produced under primary depletion, with the potential to install a water injection scheme at a later date. Under the terms of a farm-out agreement, TAQA Bratani Limited (60% working interest and Operator), funded Antrim’s working interest share of the drilling, completion and tie-in costs. Antrim’s share of the completion and tie-in costs will be recovered by TAQA from Antrim’s share of initial production revenue.

Antrim’s work on a FDP for the Fyne Field in UK Central North Sea Licence P077 Block 21/28a (Antrim working interest 100%) is on track for submission to DECC in January 2013. As announced on November 13, 2012, a Heads of Terms agreement has been signed with Hummingbird Production Limited, a subsidiary of Teekay Corporation, for an option to lease the “Hummingbird Spirit” Floating Production, Storage and Offloading vessel (“FPSO”) for use in the development of the Fyne Field. First oil is anticipated in the fourth quarter of 2014, contingent on the timing of the redeployment of the Hummingbird Spirit from its current location.

 Stephen Greer, Antrim President and CEO, commented: “While we are disappointed with the Cyclone result, the Company has made significant progress on its other North Sea properties, including starting production from the Causeway Field, the anticipated start of production from the successful Cormorant East well before the end of the month, and probably most significant, the Company securing an export route for oil from the 11.7 million barrel 100%-owned Fyne Field by contracting the Hummingbird FPSO.”

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Press Release, December 7, 2012