Antrim Announces $50 Million Working Capital Debt Facility
Antrim Energy Inc., an international oil and gas exploration and production company, announced that Bank of Scotland plc has agreed to provide the Company's subsidiary Antrim Resources (NI) Limited with a US$50 million working capital facility.
The working capital facility will be available for pre-development costs associated with Antrim's Causeway property (Antrim 65.5%, operator). Antrim is currently preparing a Field Development Plan ("FDP") for the property. Discussions with nearby production facility owners are well underway and an agreed 'export' route and FDP is expected to be submitted to the Department for Business, Enterprise and Regulatory Reform during the second quarter of 2008.
"We are delighted to work with Bank of Scotland in the development of the Causeway area and look forward to working with them in delivering on our overall UK growth strategy," said Stephen Greer, President and CEO. "Concurrent with our Causeway development, we also anticipate accelerated development of the Fyne and Dandy fields with production forecast, upon approval of a FDP, for early 2010."
The working capital facility is subject to satisfactory due diligence, execution of full documentation and achievement of all conditions precedent. Upon approval of the FDP, the facility is expected to be replaced with a US $150 million senior secured field development facility and US $40 million contingent cost overrun facility. The facilities, together with Antrim's current treasury, will be used to finance Antrim's share of Causeway development costs in the UK North Sea. Early cash flow from Causeway production is expected to fund the development of additional reserves in the Causeway area.
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