Several respected investors have revealed their current O&G holdings in the recent discussion on TMF. Conspicuous by its absence is Antrim Energy (LON:AEY) - so I thought I would do a write up and find out if readers know some negatives that I don't.
In summary, AEY has a market cap of £118M (184M shares @64.25p) and listed in Toronto and on AIM, making it eligible for ISAs. It has £45M in cash and no debt. It has acreage in 3 geographical areas - Argentina (income helping to keep the lights on), UK North Sea (for imminent development despite Osborne's tax, one hopes), and Tanzania (offshore exploration, and highly fashionable).
ARGENTINA
AEY describes its Tierra del Fuego operations as a 'self sustaining profit centre'. Output is 1,759 boepd, of which about 400bopd is liquids. According to the latest available quarterly report, the netback for the 9 months to Sep 2010 was $9.52/boe. Production is anticipated to remain steady thanks to a 10 well programme in 2010 (8 successes: 3 tied in, 1 awaiting tie in and 4 awaiting fraccing in the current Q1). In addition to its Tierra del Fuego property, AEY has recently taken a 50.1% interest in an exploration area further North at Cerro los Leones. The commitment is for seismic and up to 5 wells in 3 years at a work cost (net to Antrim) of $6.94M. Despite the cash flow from Argentina, AEY made a net loss of $5.8M for the 9 months to Sep 10.
UK
AEY predicts that its global net production will increase from the current 1,750 boepd (from Argentina) to just under 3,000 boe in 2012 and to just under 7,000 boe in 2013. The increase is to come mainly from the development of Causeway followed by Fyne.
Causeway - AEY farmed out to Valiant and expects to be left with a 35.5% WI (10.2mmbbls P2 net). AEY will have a $21.75M carry on development costs. VPP (operator) are supposedly finalizing an FDP for submission to DECC.
Fyne - Premier Oil paid $2M for an option to acquire 39.9% of Fyne (if PMO execute the option then AEY will receive a further $48M of carried interest in the development). PMO also have the option to participate 50:50 in further exploration in the Greater Fyne area (internal P50 prospective resource…
