News

Jun 4, 2001 - 16:51 ET Antrim Energy Inc. Updates New Zealand Activity

CALGARY, ALBERTA--ANTRIM ENERGY INC. (TSE: "AEN"- news; " Antrim")
reports the Kauri A-1 well (PEP 38719: Antrim 5% working interest)
is drilling ahead at 2,646 metres and production testing has 
commenced at the Rimu 'A' pad. The Kauri well is located 
approximately 7 km from the Rimu 'A' pad. 

Kauri A-1 has a target depth of 4,500m and will evaluate potential
Tariki sandstone, Rimu limestone and Cretaceous sandstone 
reservoirs in the large Kauri structure.  The well is expected to 
take another 20 to 25 days to reach total depth.   

The Kauri structure lies immediately south of the Rimu field where
wells have encountered both Upper and Lower sections of the Tariki
sandstone and Rimu limestone.  Two prior wells at Rimu encountered
downdip Cretaceous intervals with indications of hydrocarbons on 
electric logs or in core samples. The Tariki sandstone, Rimu 
limestone and Cretaceous sandstone intervals are expected to be 
encountered in the Kauri A-1 well at significantly higher 
elevations than in the Rimu wells.  

Production testing has begun at the Rimu 'A' pad.  The Rimu A-1 
well began production testing on May 31 at an initial rate of 607 
barrels of oil per day and 2.1 MMcf of gas per day with no water 
from the Upper Tariki sandstone reservoir. This well will be 
flowed for approximately 90 days at various rates.  Additional 
production testing will also be conducted on the A-2 and A-3 
wells.  

The Rimu A-3 well has been perforated over an interval of 
approximately 38 metres in the Upper Tariki sandstone that is 
located approximately 45 metres updip from the same zone in the 
A-1 well.  Based on pressure tests conducted on the various Tariki
sandstone completions and the information obtained from the full 
diameter cores taken while drilling the Rimu A-3, a "mud-clean-up"
acid treatment is necessary before final completion.  Prior to 
final completion, the well tested at an average flow rate over 
five days of 67 bopd and 294 Mcf per day with 19 barrels of water 
per day. The final completion of this zone will commence as soon 
as the analysis for the optimal method of stimulation is 
completed.  

The Rimu A-2 well, which is approximately 98 metres downdip at the
Upper Tariki sandstone level in the A-1 well, was initially 
perforated in the lower 25 meters of this reservoir interval and 
has confirmed that a water zone is present at this depth.  These 
perforations have been isolated, and operations are currently 
underway to perforate the top 5.5 metres of the Upper Tariki 
sandstone in this well bore.  The confirmation of a water zone 
confirms the downdip limit of oil in the Rimu structure and 
further indicates that the Upper Tariki oil discovery may be 
supported by an aquifer system, which could improve the ultimate 
oil recovery. 

Limited production testing from the Upper Rimu limestone has also 
been conducted from the wells at the Rimu 'B' pad.  The Rimu B-1 
well was tested over a 23 day period and produced at an average 
rate of 271 barrels of oil and 3.4 MMcf of gas with 146 barrels of
water per day. Analysis of production logging measurements 
indicates the water production is coming from a zone below the 
current perforations. Subsequent operations on the Rimu B-1 
completion will attempt to eliminate the water production. The 
Rimu B-2 well was tested over a 13-day period and produced at an 
average rate of 256 barrels of oil and 6.0 MMcf of gas with 8 
barrels of water per day. Further testing of the 'B' pad wells 
will commence when facilities are available. 

Construction of production and gas processing facilities is 
underway. These facilities are initially designed to handle 3,500 
bopd and 10 MMcf of processed natural gas per day and are expected
to completed and operational before year-end. With minor 
modifications, the capacity at these facilities can be increased 
relatively quickly to 7,500 bopd and 18 MMcf of processed natural 
gas per day.  The operator (Swift Energy) recently announced an 
agreement to sell to Genesis Power Limited, 38 billion cubic feet 
of natural gas over a 10-year period.  Natural gas deliveries from
the Rimu discovery will begin under this contract once production 
and gas processing facilities are completed.  

Antrim Energy Inc. holds a 5% working interest in Permit 38719 
where the Rimu discovery is located, which covers 100,652 net 
acres extending both onshore and offshore on the western coast of 
the northern island of New Zealand.  Partners are Swift Energy New
Zealand Ltd. (operator, 90% working interest) and Marabella 
Enterprises Ltd. (5% working interest). 

Antrim is committed to a strategy of growth through high impact 
global exploration supported by cash flow from an expanding 
production base. 

Certain statements contained in this press release may be 
considered as "forward looking".  Such "forward looking" 
statements are subject to risks and uncertainties that could cause
actual results to differ materially from estimated or implied 
results. 

Updated information about Antrim can be accessed on its website: 
www.antrimenergy.com

FOR FURTHER INFORMATION PLEASE CONTACT:

Antrim Energy Inc.
Stephen Greer
Chairman & CEO
(403) 264 5111
(403) 264 5113 (FAX)
E-mail: greer@antrimenergy.com

or

Antrim Energy Inc.
Keith Skipper
Executive Vice President
(403) 264 5111
(403) 264 5113 (FAX)
E-mail: skipper@antrimenergy.com
Website: www.antrimenergy.com