News

May 11, 2005 - 22:00 ET Antrim Energy Inc. Announces 2005 First Quarter Financial and Operational Results

CALGARY, ALBERTA and LONDON, UNITED KINGDOM--(CCNMatthews - May 11, 2005) - Antrim Energy Inc. ("Antrim")(TSX:AEN)(AIM:AEY) is pleased to report its financial and operational results for the three month period ended March 31, 2005.

Highlights for the quarter include:

- 39% increase in revenues over the comparable period in 2004

- 374% increase in net proved plus probable reserves on a BOE(1) basis

- 64% increase in production over the comparable period in 2004

- Acquisition of oil and gas fields in Argentina

- Acquisitions and strategic farm-outs in the UK North Sea

In the first quarter of 2005 Antrim completed a series of acquisitions and agreements in Argentina and the United Kingdom. These transactions underscore the Company's strategy of developing and increasing revenue from low risk properties while at the same time providing shareholders with well managed exposure to high impact exploration opportunities.

The acquisition in February 2005 of an interest in several oil and gas fields in Tierra del Fuego provided Antrim with an important second core producing area in Argentina. The cost of the acquisition was approximately $7.05 million (US$5.7 million) after closing adjustments, and was funded from existing working capital. The after tax net present value attributed to proved and proved plus probable reserves at December 31, 2004 was US$8.2 million and US$17.1 million respectively, based on a 10% discount factor.

The acquisition diversifies Antrim's existing asset and revenue base and is significantly accretive to Antrim on a reserves and production basis. Operating results for the three months ended March 31, 2005 only include the results from the Tierra del Fuego Concessions for the six week period from February 14, 2005, the closing date of the acquisition. Antrim looks forward to reporting a full quarter's operating results from the acquisition in its second quarter 2005 interim report.

Antrim generated cash flow from operations in the three month period ended March 31, 2005 of $223,091 ($0.00 per share) compared to a net cash flow from operations of $439,074 ($0.01 per share) in the comparable period in 2004. Net loss in the first three months of 2005 was $349,887 ($0.01 per share) compared to a net income of $12,254 ($0.00 per share) in 2004.

Financial and Operating Results
                                                  Three Months Ended
                                                           March 31,
Financial Results ($000's except            -------------------------
 per share amounts)                              2005           2004
                                            -------------------------

Revenue                                         2,222          1,599
Cash flow from operations                         223            439
Cash flow from operations per share              0.01           0.01
Net earnings (loss)                              (350)            12
Net earnings (loss) per share                   (0.01)          0.00
Working capital                                11,805         15,402
Capital expenditures                            7,729            444
Debt                                                -              -

Common shares outstanding (000's)
End of period                                  39,481         31,387
Weighted average - basic                       39,487         31,351
Weighted average - fully diluted               40,692         32,655

Netbacks
Wellhead price ($/BOE)                          32.30          37.61
Royalties ($/BOE)                               (4.18)         (4.65)
Operating expenses ($/BOE)                      (7.86)         (9.72)
                                            -------------------------
Netback ($/BOE)                                 20.26          23.24
                                            -------------------------
                                            -------------------------

Production
Oil, natural gas and NGL production (BOE)(1)   68,773         42,501
Oil , natural gas and NGL production
 (BOE per day)(1)                                 764            467

(1)The BOE conversion ratio of 6 mcf:1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.

Antrim has maintained a strong working capital position after the production acquisition in Argentina and the acquisition of additional interests in the United Kingdom. At March 31, 2005, Antrim had working capital of $11,805,109 (December 31, 2004 - $20,324,848) including cash of $11,400,359 (December 31, 2004 - $21,477,705) and no debt.

As a result of farm-out agreements announced in November 2004 and March 2005, the Company expects to participate in 2005 in two wells to be drilled on its UK North Sea acreage at no additional cost to the Company. Antrim also seeks to participate in additional exploration and development opportunities in Argentina and the United Kingdom and subsequent to the end of the quarter, Antrim signed an agreement to farm-in on UKCS Block 21/15a. Antrim will earn a 25% interest in the Block by contributing 35% of the drilling costs of a well to be drilled offsetting the Bennachie oil and gas discovery which tested at 4,363 bopd and 2.67 MMcf/d of natural gas from the Jurassic Fulmar Formation. A well on the Block is expected to be drilled in the fourth quarter of 2005 or first quarter of 2006.

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

Antrim Energy Inc.
Consolidated Balance Sheets
As at March 31, 2005 and December 31, 2004 (unaudited)
---------------------------------------------------------------------

                                                 2005           2004
                                                    $              $
                                         ----------------------------

Assets
Current assets
Cash and cash equivalents                  11,400,359     21,477,705
Accounts receivable                         3,038,379      3,489,087
Inventory and other                         1,170,635        199,445
                                         ----------------------------
                                           15,609,373     25,166,237

Petroleum and natural gas properties       17,409,683      9,791,904
Office equipment - net of accumulated
 amortization of $528,949                     152,323        165,767
 (2004 - $503,949)
Other assets                                1,223,111              -
                                         ----------------------------

Total Assets                               34,394,490     35,123,908
                                         ----------------------------
                                         ----------------------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities    2,803,779      4,163,522
Income taxes payable                        1,000,485        677,867
                                         ----------------------------
                                            3,804,264      4,841,389

Future income taxes                            33,838         33,838

Asset retirement obligation                   588,258        284,882
                                         ----------------------------
                                            4,426,360      5,160,109

Shareholders' Equity

Share capital                              46,034,140     45,813,132
Contributed surplus                           628,928        495,718
Deficit                                   (16,694,938)   (16,345,051)
                                         ----------------------------

                                           29,968,130     29,963,799
                                         ----------------------------

Total Liabilities and Shareholders'
 Equity                                    34,394,490     35,123,908
                                         ----------------------------
                                         ----------------------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the three months ended March 31, 2005 and 2004 (unaudited)
---------------------------------------------------------------------

                                                 2005           2004
                                                    $              $
                                         ----------------------------

Revenue
Oil and gas sales                           2,221,684      1,598,665
Royalties                                    (287,334)      (197,652)
                                         ----------------------------

                                            1,934,350      1,401,013

Interest and other income                      69,256         68,727
                                         ----------------------------

                                            2,003,606      1,469,740
                                         ----------------------------

Expenses
Operating                                     540,767        413,300
General and administrative                    786,755        392,544
Stock based compensation expense              133,210         71,320
Depletion and depreciation                    424,646        347,000
Accretion of asset retirement obligations      15,122          8,500
Foreign exchange loss (gain)                   12,158        (44,465)
                                         ----------------------------

                                            1,912,658      1,188,199
                                         ----------------------------

Income (loss) for the year before
 income taxes                                  90,948        281,541

Income taxes (recovery)
Current                                       440,835        269,287
Future                                              -              -
                                         ----------------------------

                                              440,835        269,287
                                         ----------------------------

Net Income (Loss) for the Period             (349,887)        12,254

Deficit - Beginning of Period             (16,345,051)   (10,758,912)
                                         ----------------------------
Deficit - End of Period                   (16,694,938)   (10,746,658)
                                         ----------------------------
                                         ----------------------------

Net Income (Loss) Per Common Share
 - Basic                                        (0.01)          0.00
Net Income (Loss) Per Common Share
 - Diluted                                      (0.01)          0.00

FOR FURTHER INFORMATION PLEASE CONTACT:

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

or

Antrim Energy Inc.
Anthony J. Potter
Chief Financial Officer
(403) 264-5111
(403) 264-5113 (FAX)
Email: skipper@antrimenergy.com
Website: www.antrimenergy.com