Troubled oil firm Antrim has warned that it could face administration unless shareholders back a deal to sell assets to Aberdeen tycoon Ian Suttie.
The Canadian-owned firm, which announced it was selling off its UK interests earlier this year in a bid to stem the costs of developing the Causeway field, posted a £23million loss for 2013.
The figures represent a significant improvement from 2012’s losses, when the firm lost more than £80million, but the company warned that unless the sale was approved by shareholders next month, it could face going under.
The company agreed a deal to sell off its stake in Causeway and Cormorant East, along with the Kerlock and Typhoon prospects, to Mr Suttie’s First Oil in a £32million deal last month.
Increased impairment charges and delays to the Causeway project took a dangerous toll on Antrim’s finances.
“If the transaction is not approved by Antrim shareholders, or is delayed or not completed for any other reason or if the meeting is adjourned or otherwise delayed, and as a result Antrim is declared to be in default of its obligations, the lender may apply to a court to appoint a receiver or administrator for an order to sell certain of Antrim’s assets to generate sufficient proceeds to repay the debt owed,” it warned in its annual report yesterday.
“If the lender chose to realise on their security, Antrim may no longer be able to carry on business as a going concern.”
Antrim retained a stake in the Fyne and Erne licences, along with exploration blocks off Ireland, with environmental reports for the Fyne project – which will see ABTechnology and Enegi Oil using a revolutionary unmanned buoy on the site – due to be submitted later this year ahead of a field development plan being submitted by the end of August.
The sell-off to First, Antrim said, would give the Canadian firm about £18million in working capital and no debt.
First Oil Expro already has stakes in a number of North Sea fields, including the Cormorant East field near Causeway.