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

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023