LONDON (Alliance News) - Canada-based oil and gas company Antrim Energy Inc. Friday reported its first ever quarterly profit as it started producing oil and earning revenues, although it warned that there remain significant risks to its business.
The company with assets in the North Sea and offshore Ireland reported a net profit of USD930,000 for the second quarter of 2013, compared with a loss of USD6.4 million a year earlier.
Production at its Causeway field averaged a gross rate of 2,283 barrels a day in the quarter, meaning it reported oil revenue of USD17.1 million for the first half of the year and cash flow from operations of USD7.8 million. Revenue on the second quarter was USD5.1 million.
Still, oil production slowed in the second quarter compared with the first quarter, which the company blamed on natural decline and because production was interrupted by a well owned by another company coming on stream. Net production was 60,755 barrels in the second quarter compared with 148,586 for the first half as a whole.
Its sales price also fell due to the fall in global oil prices. The sales price was USD105.47 a barrel, compared with USD109.84 a barrel for the whole of the first half.
As a young company, Antrim gave its going concern disclaimer, saying there are a number of material uncertainties that raise significant doubts as to the company?s ability
to continue as a going concern. Those include the performance of the producing wells, oil prices, ability to finish the planned development program for Causeway within budget, ability to secure additional financing, relinquishment of commitments on certain licences and settlement of contingencies.
Antrim Energy shares were down 44.1% at 3.2858 pence Friday morning, the biggest decline on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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