Antrim Energy Inc. announced today that it has withdrawn its proposed private placement offering of up to US$100 million in senior unsecured convertible debentures.
Antrim declined to accept the convertible debentures given the relatively high cost in terms of market interest rate and conversion price. The proceeds from the offering were proposed to be used primarily to accelerate the appraisal and development program on the recently drilled Fyne Field. The Company will now proceed with the appraisal of the Fyne Field as previously planned, drilling the first well in July / August this year and following up success with additional drilling in 2009. First production from Fyne is expected in 2010.
Antrim's plans regarding its Causeway property in the northern North Sea remain unchanged with the next well scheduled to start drilling in mid-June. Causeway appraisal and development is fully funded through to first production given Antrim's current working capital (US$70 million at the end of last quarter) and the previously announced US$50 million working capital facility and proposed US$150 million bank debt facility upon approval of the Causeway field development plan.
"We had anticipated proceeds from the debenture issue would allow the company to accelerate the appraisal and development of the Fyne discovery," said President and CEO Stephen Greer. "However, the terms offered in this current debt market would not have been in the best interests of Antrim's shareholders and the Company has elected not to accept the offering. Antrim will proceed with the development of the Fyne oil field under previously announced plans and anticipates that the Fyne development will proceed under senior bank debt, similar to that arranged for the Causeway property. In the meantime the Company remains well financed and will proceed with its current drilling plans."
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