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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021