(Corrects paragraph 8 to say oil prices hit a high of $110.84,
* Production halted at Causeway, Cormorant East fields
* Analyst estimates production could be halted by a week
* Antrim shares fall as much as 4 percent
By Krithika Krishnamurthy
Jan 16 Antrim Energy Inc said
production was halted at its only producing oilfields in the
North Sea following a leak in an oil pumping station that is
part of Britain's North Sea Brent pipeline system, sending its
shares down 4 percent.
The leak at one of the legs of the Cormorant Alpha platform,
operated by Abu Dhabi oil company Taqa, has disrupted
production at more than 20 oilfields in the northern North Sea,
Antrim said production was stopped at the Causeway field and
the Cormorant East field and that all pipeline infrastructure
associated with the Cormorant Alpha platform was shut in.
Analyst Ryan Galloway of Casimir Capital Ltd said
production at the two oilfields could be down for at least a
Calgary-based Antrim has a 35.5 percent stake in the
Causeway field, which produced an average of 4,800 barrels of
oil per day (bpd) in November. Britain's Valiant Petroleum Plc
owns the rest of the field and operates it.
Antrim owns 8.4 percent of the Cormorant East field, which
started production on Monday with an initial rate of about 5,500
bpd. Taqa owns 60 percent of the field and operates it, while
First Oil Expro and Granby Enterprises Ltd are the other
"The impact on Antrim could really be quite minor and what
I'm reading appears to be minor, but we don't know..." said
analyst Bill Newman of Mackie Research Capital.
Taqa said it shut down all pipeline infrastructure running
through the Cormorant Alpha platform, and that it had no restart
date, sending crude oil prices surging to $110.84 a barrel on
At $110 per barrel, the lost production is worth about $10
million per day, said Mike Tholen, economics director at Oil &
Gas UK, a trade association for the offshore oil and gas
He estimated that oil produced from the affected fields
accounts for about 10 percent of UK's production of 1 million
barrels per day.
Shell UK said the shutdown has not had any direct
impact on its Brent Field installations.
Antrim currently seeks joint venture partners and financing
for its development projects in Fyne field in central North Sea.
It expects to begin oil production from the field in the fourth
quarter of 2014.
Antrim also has an options agreement for assets in Tanzania
Shares of Antrim, valued at about C$103 million, were at a
two-week low of 54 Canadian cents on Wednesday morning. They
have lost nearly a third of their value over the last three
months but is trading at about two times the analysts' earnings
expectations for fiscal 2013, according to Thomson Reuters data.
It's London-listed shares closed down 5 percent at 35 pence.
(Editing by Don Sebastian)