Sound Oil has decided to withdraw its previously announced offer for Antrim Energy given the decline in oil prices, the resultant deterioration in appetite for deepwater exploration and following further assessment of Antrim Energy's assets.
This decision is not a huge surprise and should be welcomed by the market according to Sound Oil. The company’s decision to make an offer for Antrim represented a diversion from the company's focus on Italy and the Mediterranean. The priorities for 2015 are to commence production at the Nervesa field and drill an exploration well at the Badile prospect, both of which could have a material impact on the NAV for Sound Oil.
Adapted from press release by Joe Green