Selling Antrim Resources Ltd. subsidiary; company said it will exit deal debt free
CALGARY—Antrim Energy Inc. says it intends to sells its British subsidiary, Antrim Resources Ltd., for $53-million in cash, plus the assumption of certain liabilities and adjusted working capital.
Antrim said it will retain its interest in P077 Block 21/28a, known as the Fyne Licence, and P1875 Block 21/29d, known as the Erne Licence, as well as FEL 1-13 in the Porcupine Basin offshore Ireland.
The agreement includes provision for payment of a liquidated damages fee of $5.3-million under certain circumstances if the transaction is not completed, Antrim said in announcing the deal.
The company’s board has unanimously recommended shareholders approve the deal.
The sale follows an extensive process by the company to secure additional financing to meet higher than expected capital costs to complete its Causeway development as well as meet its ongoing payment and oil swap obligations with Credit Suisse AG.
Following the closing of the transaction, Antrim expects to have approximately $17- to $18-million in working capital and no debt.
Antrim is a Calgary-based junior oil and gas exploration and production company with assets in the U.K. North Sea and Ireland.