RNS25 May 2016 12:51
A few points I noted;-
General and administrative ("G&A") costs decreased to $0.4 million in the first quarter of 2016 compared to
$0.8 million for the corresponding period in 2015. The decrease in G&A is primarily due to lower salary and
administrative expenses as part of the Company's ongoing efforts to reduce annual G&A.
Antrim, with its current cash resources, no debt and no decommissioning obligations, continues to maintain a
strong financial position. Working capital at March 31, 2016 was US$9.2 million, including cash and cash
equivalents of US$9.4 million.
Excluding foreign exchange gains and losses, cash flow used in operations in the first quarter of 2016 was $0.3
million compared to $0.8 million for the corresponding period in 2015.
FEL 1/13 has a 15 year term, with an initial three-year term followed by three four-year terms. The initial
three-year term expires in early July 2016 and Antrim has submitted a request to extend the first exploration
term by an additional two years pending government approval and agreement on an additional technical work
program. The Company is also currently seeking a new farm-in partner and operator to complete any additional
technical work necessary during the extension period with the ultimate goal that a well commitment could be
made at the end of the revised first exploration phase. In the current commodity price environment the cost of
drilling an exploration well on the licence has decreased considerably from when the licence was first awarded
in 2013. As part of a farm-out transaction Antrim would seek a carry on the first exploration well.
Antrim continues to search for M&A opportunities, using a structured approach in its evaluation. Key criteria
include 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. In a period of significant
commodity price volatility, ensuring that the opportunity remains viable in a low oil and gas price environment
is a key component in the evaluation.
With reference to M&A opportunities,... I have been researching EOG recently & it occurred to me that they might tick some of the boxes.
BW
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