Antrim Energy goes on M&A trail

Canadian exploration firm, Antrim Energy — which has sizeable interests off the Irish coast — has reported a significant slashing of losses and has said it is on the look-out for additional prospects.

Antrim owns a 25% stake in the highly-rated Skellig exploration licence, located off the south-west coast, which has an estimated 1.1bn barrels of recoverable oil.

The company reported, on Friday, overall losses of $713,000 for the first quarter of 2015; down significantly on losses of almost $8.5m for the corresponding three-month period last year.

Management said in the quarterly update that it would use its strong working capital balance — of $14.2m— and continue to evaluate new opportunities for “transformative upside potential”.

“The company intends to use its strong balance sheet and licence holding to acquire opportunities, either asset-specific or corporate, where an acquisition or a corporate combination would enhance shareholder value,” Antrim said.

It didn’t specify where it was looking— Antrim’s main assets are spread across the North Sea and Irish waters — nor mention the Irish Government’s latest licensing round (the North Atlantic Margin Licensing Round), which closes later this year.

“The company has good access to international M&A opportunities and evaluated a number of opportunities in 2014 and the first quarter of 2015,” management added.

“The company plans to look for additional opportunities and assess those opportunties based on strategic fit, focus on near-term appraisal/development, use of funds, transformative potential with upside potential for Antrim shareholders and current or near-term cash flow,” it said, noting also that it sees its strong financial position as a competitive advantage in the current volatile oil price environment.

Antrim is also continuing to sell off part of its 25% stake in the Skellig project —which it shares with US firm, Kosmos Energy — to a development partner.

“The company will continue to evaluate and de-risk the Irish Skellig Licence, with a view to farming down or otherwise reducing its interest before a well is drilled,” the company said.

An independent consultation last year put potential resources, at Skellig, at between 260m and 4.5bn barrels; with 1.1bn being the best estimate.