Antrim Starts Up Argentine Gas Production at Tierra del Fuego Project
Antrim Energy Inc. announced that on September 18, the gas gathering system for its Tierra del Fuego project in Argentina went on-stream, delivering gas to mainland Argentina. Antrim's working interest in the Tierra del Fuego concession is 25.78%.
The system will deliver at rates rising to 12.25 million cubic feet of gas per day (mmcf/d) during the fourth
quarter, and the Company expects that will increase to 24.5 mmcf/d in April 2009. Antrim's net Argentine
production has climbed to approximately 1,650 barrels of oil equivalent per day (boe/d) from about 1,500 boe/d,
and is expected to exceed 3,000 boe/d by July 2009.
Further gas production increases are anticipated with the completion of the proposed new high pressure sales
line connecting the island of Tierra del Fuego with the national gas grid in late 2010. In the meantime, the
Company is actively pursuing other gas markets in mainland Argentina for deliveries commencing in 2009.
Mainland gas prices are expected to improve significantly from current levels of around US$ 1.40 per thousand
cubic feet (mcf) over the next 24 months as government controls on energy pricing are eased.
The Company's ongoing Tierra del Fuego drilling program continues to enjoy success. Since commencing drilling operations in 2005 a total of 38 wells have been drilled on the concession of which 36 have been cased for oil or gas production. Gas well, drill stem and production tests from wells drilled in this ongoing drilling
campaign exceed a combined 100 mmcf/d. So far during 2008 14 wells have been drilled. Thirteen of which have been cased as oil or gas wells, with just one abandoned as dry hole.
Drilling is now underway on the fourteenth location, the first in a five-well series comprising one development, three appraisal and one exploration well. Together with its partners, Antrim is evaluating further locations identified on recently acquired proprietary 3D seismic, for drilling in 2009.
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