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Shares in Antrim Energy (LON:AEY, TSE:AEY) rose sharply on Monday morning after the company sold off some UK assets.
The explorer and producer has agreed a deal to sell the rump of its UK assets to First Oil Expro for US$53mln – or almost four times the group’s current market capitalisation.
The plan is to use some of the cash to settle its payment and oil swap agreements with Credit Suisse.
Antrim reckons it will be left with working capital of US$17-18mln and no debt.
It is keeping its interest in the Fyne and Erne licences in the North Sea as well as its holding in FEL 1-13, in the exciting Porcupine Basin off the Atlantic coast of Ireland.
The deal has been “unanimously approved” by the Antrim board, the company said.
“The recommendation follows an extensive process by the company to secure additional viable financing needed to meet higher than expected capital costs to complete the Causeway development as well as meet its ongoing payment and oil swap obligations with CS,” Antrim told investors.