Antrim Acquires Medjanera Block in Argentina
Antrim Energy has purchased the producing Medianera Block in Rio Negro Province, Neuquen Basin, Argentina. The effective date of the transaction is February 24, 2006.
Antrim acquired a 70% working interest in the block for cash consideration of approximately US$1.2 million after closing adjustments. The Medianera Block was discovered in 1961 and covers an area of 53 km2 (13,000 acres). It is located in central Argentina in the Neuquen Basin, Argentina's most prolific oil and gas basin. Currently, the block produces between 45 and 50 barrels of 38 degrees API oil per day from 5 wells. Cumulative production from the field is 14.8 mmbbls. A total of 102 wells have been drilled on the Block, of which 86 wells were producers. The typical depth of each well is 950 -1,150m, targeting the Tordillo/Quintuco Formations.
Antrim believes the block has significant exploitation and exploration potential, both uphole and from deeper horizons. No deep wells have been drilled on the block to date. Antrim intends to acquire 3D seismic over the entire block in the second and third quarter of 2006. The operator of Antrim's concessions in Tierra del Fuego, Argentina, has acquired the remaining 30% working interest in the block and will operate the block.
Stephen Greer, Chief Executive Officer of Antrim commented "We are delighted to have acquired this block together with our partner. Our current re-completion and drilling program in Tierra del Fuego has been very successful to date, and we look forward to pursuing a similar result from the Medianera Block in what is Argentina's premier oil and gas region."
With respect to Antrim's previously announced intention to sell certain non-core assets, discussions are ongoing and a further announcement will be made once negotiations are complete. Antrim also announces that Mr. Dwayne Warkentin will be leaving the Company in late March 2006 to pursue other interests. Mr. Warkentin joined Antrim in 1999 and was appointed Chief Operating Officer in February 2005. Stephen Greer commented "It has been a pleasure to work with Dwayne over the past several years and we wish him all the best in his new endeavors." Antrim hopes to announce a new executive appointment in March 2006.
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