Canada's Antrim Energy said Friday that it is reviewing its options, including a possible divestment of its share of the Causeway oilfield in the North Sea, amid ongoing discussions with its lender to mitigate the impact of restrictions on its cash balances and existing loan terms.
Antrim said that there are "a number of material uncertainties that raise significant doubts as the company's ability to continue as a going concern". These include its compliance with debt covenants, the performance of producing wells and related infrastructure, the oil price and its ability to finish the planned development program for Causeway within budget.
Antrim is in discussions with its lender to relax certain requirements relating to its ability to access restricted funds, to quantify any additional funding requirements and to reassess terms currently based on the original production profile for the Causeway asset. It warned that there is no certainty that any changes will be made to the existing debt facility.
In 3Q 2013 Causeway's production rate averaged a gross 1,439 barrels per day (421 bpd attributable to Antrim), compared with a year-to-date average of 2,334 bpd.
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