LONDON (Alliance News) - Antrim Energy Inc Monday said its special resolution to approve the sale of its Causeway, Kerloch, and Cormorant East assets in the North Sea was passed at its recent shareholders meeting, helping to offset some of its financial difficulties.
The oil and gas exploration company saw its shares jump during early trading after it said the sale is to be structured as a sale of Antrim's subsidiary Antrim Resources NI Ltd to First Oil Expro Ltd, expected to be completed by April 15.
In February, the company announced the proposed deal, for First Oil Expro to buy its subsidiary for USD53 million in cash, plus the assumption of certain liabilities and adjusted working capital, from which Antrim will settle on closing all outstanding obligations under its Payment and Oil Swap agreements with Credit Suisse AG and Credit Suisse International.
Antrim said at the time that it will retain its licences in the P077 block 21/28 a and P1875 block 21/29d as well as the FEL 1-13 site in the Porcupine Basin, offshore Ireland.
The company is currently in breach of certain covenants related to a USD30 million payment and oil swap deal in entered in January 2013 and it continues to experience higher-than-expected capital costs to complete its Causeway field development in the UK North Sea for which the company is subject to requirements to place additional funds into a reserve account with the lender.
Antrim said in March that failure to fund these capital costs or meet financial and operating covenants could result in the loss of the Causeway asset.
However, the company is now going ahead with its subsidiary sale in order to help solve some of its financial struggles.
Antrim Energy shares were up 9.1% to 4.50 pence, putting it in the top AIM risers Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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