Antrim Energy plummets on well failure

Antrim Energy plunged on Thursday morning after announcing its 30 per cent-owned Cyclone well in the North Sea had failed to strike oil.

Antrim Energy plunged on Thursday morning after announcing its 30 per cent-owned Cyclone well in the North Sea had failed to strike oil.

The firm said that after drilling 6,076ft it hit 105ft of Palaeocene Cromarty sands but the well logs identified only residual oil.

This suggested that the trap, which was identified as the critical risk factor, was breached, Antrim said.

"Work will continue on the licence to evaluate the remaining prospectivity in light of the Cyclone well result," it added.

The news caused shares to drop 19% immediately after the markets opened.

Its partner Premier Oil, which owns the remaining 70% of Cyclone, said in a separate announcement that the well would be plugged and abandoned.

The much larger firm only saw its shares dip 1.2%.

"While we are disappointed with the Cyclone result, the company has made significant progress on its other North Sea properties," said Antrim's Chief Executive, Stephen Greer.

This included starting production from the Causeway Field and the anticipated start of production from the successful Cormorant East well before the end of the month, the firm said.

The company has also secured an export route for oil from the 11.7m barrel 100%-owned Fyne Field by contracting the lease the "Hummingbird Spirit" Floating Production, Storage and Offloading vessel.

Recommended

Share tips of the week – 19 August
Share tips

Share tips of the week – 19 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
19 Aug 2022
How to invest in smart factories as the “fourth industrial revolution” arrives
Share tips

How to invest in smart factories as the “fourth industrial revolution” arrives

Exciting new technologies and trends are coming together to change the face of manufacturing. Matthew Partridge looks at the companies that will drive…
18 Aug 2022
How to invest today? Look to the past, not the future
Investment strategy

How to invest today? Look to the past, not the future

The past few years have seen so many changes to our way of life that many people said we had entered a “new normal”. But as it turns out, the new norm…
18 Aug 2022
A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022

Most Popular

How to protect your wealth as inflation hits new record highs
Investment strategy

How to protect your wealth as inflation hits new record highs

UK inflation has hit a new record high of 10.1%. It's going to hurt, says Dominic Frisby. Here's how you can protect your wealth.
17 Aug 2022
How to cut your energy bill
Personal finance

How to cut your energy bill

The energy-price cap will almost double in the autumn. What does this mean for your money, and how can you alleviate the squeeze? Ruth Jackson-Kirby h…
17 Aug 2022
Are GSK’s legal troubles a threat to the firm’s survival?
Biotech stocks

Are GSK’s legal troubles a threat to the firm’s survival?

Pharmaceutical giant GlaxoSmithKline is facing legal action over heartburn drug Zantac that has seen billions wiped off its market value. Rupert Hargr…
16 Aug 2022