Antrim Energy sells UK subsidiary to raise cash

10th Feb 2014 09:35

North Sea and Ireland oil explorer Antrim Energy is offloading its UK arm for 53m dollars to fund higher-than-expected project costs, boosting its shares.Antrim, which has two producing North Sea fields, has agreed to sell Antrim Resources to First Oil Expro, although it will keep its interests in the Fyne and Erne licences and an asset in the Porcupine basin off the Irish coast.The move follows efforts by the group to secure extra funding to cover higher-than-expected capital costs of completing its Causeway development in the North Sea, as well as meeting ongoing payment and oil swap obligations with Swiss bank Credit Suisse.Canada-based Antrim has faced technical problems at Causeway which meant actual production failed to match expected production volumes under its oil swap commitments, causing cost and funding issues that could have led to loss of the asset.When the deal closes, Antrim expects to have about $17-$18m in working capital and no debt.Shares rose 39.4% to 5.75p at 09:45 in London.PW