LONDON (ShareCast) - Antrim Energy (Toronto: AEN.TO - news) advanced Monday following the announcement of the first oil production from its Cormorant East Field in UK Northern North Sea.
The oil and gas company said an initial production rate of 5,500 barrels of oil per day with no water was achieved - 85 days following the discovery of the field.
Oil will be exported to the Sullom Voe terminal for sale after being processed at the North Cormorant platform operated by TAQA Bratani.
Cormorant East shows significant potential for upside dependent on the
reservoir response to the existing well, according to an operator's analysis.
Other locations within the Cormorant East development area have been identified and will be assessed.
Stakeholders in the Contender Block include Atrium, TAQA, Dana Petroleum, First Oil Expro and Bridge Energy Enterprises.
Under the terms of the farm-out agreement with TAQA, Antrim's working interest share of the drilling, completion and tie-in costs for the Contender Well were funded by TAQA.
"Antrim's share of the completion and tie-in costs will be recovered by TAQA from revenue from Antrim's share of initial production," the company said in a statement.
Shares soared 7.64% to 38.75p at 9:24 Monday.