Monday, 21 January 2013

Casimir says brief shut-in at North Sea to "minimally impact" Antrim's 2013 cash flows

Casimir Capital says that it expects minimal impact to Antrim Energy's (TSE:AEN) 2013 cash flows, following a brief shut-in period last week at its Causeway field in the North Sea, UK. 
The oil and gas producer said Friday that oil production resumed at its Causeway field, which flows through the Brent pipeline via the Cormorant Alpha platform. 
Production at Causeway was shut in for a brief period of 3 days, as the TAQA-operated pipeline system at Cormorant Alpha had a reported leak in one leg of the platform, which required shut in of more than 20 fields that connect to it. 
Antrim also said that its Cormorant East Field is expected to be back online shortly as well. 
Further analysis determined that the leak impacted Alpha production alone, and not the adjacent fields, which flowed through Alpha to the Brent system. 
"With the shutdown only lasting a few days last week, we anticipate minimal impact to Antrim’s 2013 cash flows," notes Casimir analyst Ryan Galloway. 
The analyst adds that production from Fionn is expected for mid 2013, with the oil produced to be combined with production from Causeway for processing at North Cormorant - then exported through Cormorant Alpha's and into the Brent pipeline system. 
The initial pre-drilled well is expected to add 900 barrels per day net to Antrim on a full-year average basis, Galloway predicts. 
The Casimir Capital analyst kept his $1.15 price target on Antrim, and speculative buy rating.
Antrim has a 35.5 per cent interest in the Causeway field, and an 8.4 per cent interest in the Cornorant East field. 
Shares in Antrim rose more than 3.3% this morning, to trade at 62 cents.

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