After recently completing a placing at CA$1.07, raising $45m, adding to their current cash position of $25m, I decided to put some questions to Antrim Energy (LON:AEY) in relation to their plans for the year and this money, with Investor Relations Manager Scott Berry kindly replying:
DGW: I note that you hope drilling on the GTA will commence in H2 this year, so could I ask:
a) How many prospects are you hoping to drill this year?
SB: We plan to drill the West Teal prospect this year with a possibility of drilling the Carra prospect.
b) Are you hopeful of Premier Oil (LON:PMO) becoming involved in this campaign?
SB: Yes, this would be a good partnership however we plan to move forward on the drilling of these wells even if Premier does not elect to participate.
c) After the recent fund raising, given your I believe cash position of about US$70, are you now fully funded for this campaign, even if Premier do not become involved? Or are you still likely to consider further partners like you said was a possibility last year so as to keep the costs down?
SB: As above and further, we continue to seek out other additional partners. We have received interest from a number of parties and we are currently evaluating these. West Teal is expected to cost approximately $19 million to drill and a further $11 million to test and complete. Although we could fund this entirely, it is our preference to have at least one partner.
DGW: Also could I ask, which prospects are you hoping to begin drilling this year, the lower risk prospects (Offsetting current discoveries, which I believe you put the odds of success at 1:2) or the higher risk Jurassic (1:5 chance of success)?
SB: As above and further, West Teal is considered to be the lowest risk prospect, as we will be offsetting a discovery well on the licence. Carra offsets the Fyne discovery and is also considered a 1:2 risk and the cost of the well is $11 MM (untested).
*DGW: Just to note, West Teal has probabilistic mean recoverable reserves of 16mmbbls, at a 37 API, whilst Carra has an unrisked mean P50 prospective resource of 23.3mmbbls (12.3mmbbls risked).
END
Conclusion
To conclude, I believe this interview has only…
