Mr. Stephen Greer reports
ANTRIM UK NORTH SEA OIL DISCOVERY AND OPERATIONS UPDATE
Antrim Energy Inc. has released an update of activities in the United Kingdom North Sea.
The non-operated Kerloch well 211/22a-10 (Antrim 21-per-cent working interest) in the northern North Sea was drilled to a total depth (TD) of 12,282 feet and encountered a full Brent reservoir sequence, as predicted prior to drilling. The top of the Brent sandstone section came in approximately 60 feet high to prognosis. The majority of the Brent sequence was successfully cored, and extensive electric wire line logging operations are continuing and near completion.
The well discovered an oil column of approximately 116 feet in the Ness formation and a number of oil samples were taken. The crude oil gravity is approximately 32-degrees API with a gas-oil ratio consistent with other discoveries in the area. The Kerloch well was designed as a finder well with a long open-hole section being drilled to total depth. In consideration of the comprehensive data that have been collected, including cores, wire line logs, reservoir pressure measurements and fluid samples, the well will not be flow tested, as this would add significant cost and technical risk. There have been a considerable number of tests of the Brent sands in neighbouring wells in the area, including the 2006 East Causeway 211/23d-17z well in the immediately adjacent block, which flowed from the Ness formation at stabilized rates of up to 7,500 barrels of oil per day. The Kerloch well will be suspended to allow potential re-entry and future use.
Antrim also reported that Senergy Ltd. has been appointed to compile a field development plan (FDP) for the adjacent Causeway field (Antrim 65.5-per-cent working interest). Senergy, an Aberdeen-based integrated oil and gas consulting company specializing in field development, recently completed a similar FDP assignment for a Brent reservoir development in a nearby field. The Causeway FDP is expected to be presented to the United Kingdom regulatory authorities in early 2008.
In the central North Sea, Antrim is proceeding with an appraisal program on the Fyne field in block 21/28a (Antrim 75-per-cent working interest). The Fyne drilling program is on schedule and expected to start in late February using the Transocean prospect, the semi-submersible drilling platform employed in Antrim's successful 2007 drilling program on the Causeway field. Continuing on from the high-resolution 3-D seismic program acquired in May this year, the Fyne drilling program will target the Eocene Tay sandstone reservoir at approximately 4,500 feet, close to the Fyne discovery well 21/28a-2 which tested at rates up to 3,600 barrels of oil per day. Antrim plans to drill a near vertical pilot well and several lateral wells within the discovered oil column. The Fyne field is located approximately 12 kilometres southwest of the 65-million-barrel Guillemot field, which also produces from the Eocene Tay and Jurassic Fulmar sandstones.
As previously announced in Stockwatch on Nov. 21, 2007, Antrim will commence its summer North Sea drilling program using the Transocean prospect starting in June, 2008.
Qualified person review
In accordance with Alternative Investment Market guidelines, Kerry Fulton, PEng, and chief operating officer of Antrim, is the qualified person that has reviewed the technical information contained in this news release.
