The assets consist of a 25.78% working interest in three producing exploitation concessions. The cost of the acquisition is approximately US$5.7 million after closing adjustments and will be funded from existing working capital. The acquisition will add to Antrim net production of approximately 140 barrels of oil per day, 2.6 mmcf/d of natural gas and 60 barrels of LPG's (butane and propane) per day.
- Current production of 200 bbls liquid (oil and LPG's) per day and 2.6 million cubic feet of gas per day net to Antrim
- Establishment of a second core producing region in Argentina
- First natural gas and LPG revenue stream from Argentina
- Significant re-completion and development drilling opportunities with a 279 km2 3D seismic program to commence in the first quarter of 2005.
The Tierra del Fuego concessions are located in the southern tip of Argentina in a special tax free/duty free trading zone. No corporate income tax is payable on net operating income from the concessions. Provincial royalties on gross revenue are 12%. Oil production from the region may be sold domestically or exported without duty. Gas production is currently sold to residential and industrial markets under short term contracts at an average price of approximately US$0.44 mcf.
Acquisition of the concession follows Antrim's successful workover program in 2004 at the Puesto Guardian field in Argentina increasing production from the field to approximately 510 bbls per day net to Antrim. Upon completion of the transaction, Antrim will produce approximately 650 barrels of oil per day, 2,750 mcf of natural gas per day and 60 bbls of LPG per day.
Stephen Greer, CEO of Antrim said "We are very pleased to be acquiring additional producing assets in Argentina. Antrim has operated successfully in Argentina for a number of years and this acquisition will provide us with a second core producing area with significant development potential."
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