Antrim Posts Record Profit, Ups Reserves by 435%
Antrim Energy Inc. on Monday reported record financial and operating results for the year ended December 31, 2006 - and a strong outlook based on a significant increase in reserves.
--Proved and probable reserves increased 435% over 2005. --Oil and gas revenue grew 17% over 2005. --Oil and gas production increased 24.2% over 2005. --Average net gas production increased 50.7% over 2005. --Cash flow from operations grew 47.6% over 2005. --Net income reached a record $1.3 million.
2006 Management Commentary
"Antrim generated outstanding results in 2006, registering significant increases in all key measures," said Stephen Greer, President and CEO. "The most important highlights were the fact that reserves increased 435% year over year and drilling results in Tierra del Fuego, Argentina and at East Causeway in the UK North Sea met or exceeded our expectations. These results indicate that our focused strategy of increasing production in Argentina and high-impact exploration in the UK North Sea is generating significant value and strengthening our foundation."
Added Anthony J. Potter, Chief Financial Officer: "The purchase of the majority interest in the Fyne & Dandy oil fields in the United Kingdom and acquiring Medianera in Argentina during 2006 definitely enhanced our position and prospects. Our strong cash flow performance, year-end working capital position and debt-free status support our business strategy and the achievement of all of our shareholder objectives in 2007."
Mr. Greer expects 2007 to be an active and productive year for Antrim as "we plan to accelerate our drilling successes on both international frontiers of Argentina and the UK North Sea by building on the momentum of 2006."
Among the activities planned or underway:
- In Tierra del Fuego, work began in the first quarter of 2007 to acquire an additional 260 km of new 3D seismic to allow Antrim to identify both infield development locations and undrilled fault block exploration locations. Drilling of up to 10 wells in Tierra del Fuego is expected to resume in the second quarter of 2007.
- Also in Tierra del Fuego, an expansion of gas processing facilities and installation of a pipeline that will connect the Las Violetas concession to the San Martin pipeline is in progress. The expansion, projected for completion August 2007, is expected to raise gas sales capacity from approximately 21 million cubic feet per day to between 35 and 40 million cubic feet per day at which time previous gas discoveries are expected to be placed on production. Negotiations are underway for liquids-rich gas sales prior to the start-up of the expanded processing facilities. Additional oil pipeline, storage and treatment facilities are also planned for 2007 to enable increased oil production.
- At least one exploration well is planned in 2007 for each of the Medianera and Capricorn blocks. In the Puesto Guardian concession, processing of 330 km of 3D seismic data is expected to be completed in May 2007, leading to a drilling program on the concession in 2007-2008.
- In the United Kingdom, Antrim intends to follow-up the East Causeway discovery with a drilling program of up to three wells commencing in the second quarter of 2007. Antrim also plans to participate in the drilling of the Kerloch prospect in the northwest area of Block 211/22a in the fourth quarter of 2007. A seismic acquisition program on the Fyne & Dandy oil fields is expected to begin shortly in the second quarter of 2007.
Antrim Energy Inc. is an international oil and gas exploration and production company headquartered in Calgary, Alberta,
Canada. The company's objective is to create significant wealth for its shareholders through the discovery, production
and sale of oil and gas. Antrim's production and exploration operations are centered in Argentina and its high impact
oil and gas exploration is focused in the United Kingdom.
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