Italy-focused exploration firm Sound Oil has withdrawn its Intended Offer for North Sea exploration minnow Antrim Energy due to the deterioration in oil prices and reduction in global appetite for deep water exploration, the company said this morning (13 January 2015).
According to Sound Oil, its move to acquire Antrim, announced 24 November 2014, was to be part of its strategy to build a pan-European oil and gas business, adding Antrim's UK North Sea and offshore Ireland acreage to its Italy-focused portfolio.
Antrim's assets include 25% interest in the offshore Ireland, Porcupine basin, Skellig block, operated by Kosmos and on which exploration drilling is due to start in 2016. According to Antrim, Skellig has some 17 exploration leads.
Antrim also holds 100% in the North Sea Fyne discovery, over which it is in discussion with the Department of Energy and Climate change over possible development options, after missing an August deadline to submit a field development plan using buoy technology. Antrim also holds 50% in the North Sea Erne license.
Sound Oil's existing exploration portfolio is mostly onshore Italy, including the Badile and Zibido prospects in Italy. Drilling on Badile is due to start in 2015.
Sound Oil said: "Following the continued deterioration of the oil price and the resultant reduction in global appetite for deep water exploration, the Company has decided, having re-evaluated Antrim's assets, not to proceed further with an offer for Antrim at this time."