Is the oil and gas exploration minnow Antrim about to croak? Read the notes of yesterday’s result statement and you will find that the company itself admits to “significant doubts” about its ability to continue trading.
There is no doubt that Antrim is struggling with its flagship Causeway project. Discovered in 2007 and developed as a subsea satellite to Taqa’s Cormorant platform, production start-up was late.
At least when the field began to deliver oil in November last year, production set off at a gallop … around 4,500 barrels per day, choked back to 53%, which means it was capable of more at that time.
As so often happens with small fields like this, output falls off sharply and then settles for a period. But it would appear that Causeway output may have fallen faster and further than anticipated; again commonplace for small fields.
Add to the fact that Causeway will be shut in for six weeks or so while Taqa carries out maintenance on Cormorant and the fact that the company appears to have an overly ambitious work programme, including having a second go at trying to get its Fyne field development to work, I’m not surprised that its bankers are getting tough, regardless of whether they are Canadian (generally tolerant) or British (quite intolerant).
Antrim won’t actually croak, it will get picked up for a song by someone.
Interestingly, Valiant, another partner in Causeway, was gobbled up by Ithaca early this year in a deal worth £203million.
Minnows are for eating, it seems.