News

Aug 15, 2005 - 13:46 ET Antrim Energy Inc. Announces 2005 Second Quarter Financial and Operational Results

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) - Antrim Energy Inc. (TSX:AEN) (AIM:AEY) ("Antrim") today reported its financial and operational results for the six month period ended June 30, 2005.

Highlights for the first six months include:

- Successful production acquisition in Argentina

- 54% increase in revenues over the comparable period in 2004

- 93% increase in production over the comparable period in 2004

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

- Preparation for 2005 UK North Sea drilling program completed

Antrim is pleased to report a full quarter's operating results from its acquisition in the first quarter of 2005 of an interest in several oil and gas fields in Tierra del Fuego, Argentina. The acquisition, together with existing production from the Puesto Guardian field in Argentina, has provided the Company with a solid foundation from which it can develop and increase revenue from low risk properties while at the same time providing shareholders with well managed exposure to high impact exploration opportunities.

Financial and Operating Results

Three Months Ended Six Months Ended
June 30, June 30,
----------------- ----------------

Financial Results ($000's except
per share amounts) 2005 2004 2005 2004
--------------------------------- -------- ------- ------- -------
Revenue 2,812 1,677 5,034 3,275
Cash flow from operations 564 215 787 654
Cash flow from operations per share 0.01 0.01 0.02 0.02
Net loss (597) (241) (947) (229)
Net loss per share (0.01) (0.01) (0.02) (0.01)
Working capital 11,978 14,921 11,978 14,921
Capital expenditures 1,169 718 8,909 1,177
Debt - - - -

Common Shares Outstanding (000's)
----------------------------------
End of period 39,787 31,403 39,787 31,403
Weighted average - basic 39,619 31,387 39,553 31,369
Weighted average - fully diluted 40,612 38,406 40,546 38,389

Operating Results
------------------
Wellhead price ($/BOE) 29.78 39.69 30.85 38.65
Royalties ($/BOE) (3.90) (6.31) (4.02) (5.48)
Operating expenses ($/BOE) (9.52) (6.87) (8.82) (8.30)
----------------- ----------------
Netback ($/BOE) 16.36 26.51 18.00 24.87
----------------- ----------------
----------------- ----------------

Production
-----------
Oil, natural gas and NGL production
(BOE) 94,422 42,244 163,195 84,746
Oil , natural gas and NGL production
(BOE per day)(1) 1,038 464 902 466

(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 generated cash flow from operations in the first half of the year of $787,205 ($0.02 per share) compared to cash flow from operations of $653,924 ($0.02 per share) in the comparable period in 2004. Net loss in the first six months of 2005 was $946,515 ($0.02 per share) compared to a net loss of $228,637 ($0.01 per share) in 2004. Net loss increased due to the write-down in the second quarter of 2005 of costs related to permit WA-307-P in Australia following receipt by the Company of a notice from its partner that it intended to withdraw from the permit. After review of technical data and consideration of the requirement to drill a mandatory exploration well at Antrim's sole expense to maintain the permit, the Company has elected to surrender the permit and continue to focus on increasing production in Argentina and high impact exploration drilling in the UK North Sea.

Argentina- NorthWest Basin

Net oil production from the Puesto Guardian field in Argentina's NorthWest Basin in the first half of 2005 was 438 barrels of oil per day compared to 442 barrels of oil per day in the first half of 2004. In March 2005 Antrim commenced the first of a planned five well workover program on previously shut-in wells. Previous workover programs have been successful at increasing production at a modest capital cost.

In conjunction with its partners in the Puesto Guardian field and neighbouring Capricorn licence, Antrim is seeking to acquire additional seismic which would lead to the drilling of new wells on the blocks to add further production and reserves from the region.

Argentina - Tierra del Fuego

On February 14, 2005 Antrim completed the acquisition of a 25.78% working interest in three producing exploitation concessions and related processing facilities in the Tierra del Fuego region in southern Argentina. The concessions produce light crude oil, natural gas and natural gas liquids ("NGLs") and Antrim believes that the concessions have significant exploration and development potential. 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 concessions are located in a special economic zone to attract and secure economic activity. Fiscal terms include a 12% flat royalty and no corporate, export or value-added taxes apply. Oil and NGLs are sold at world market prices to domestic refineries or for export. Gas is sold to domestic buyers at low regulated prices ($0.50 - $0.80/mcf) which, as expected, have started to rise in the second half of 2005. Net oil production from the Tierra del Fuego concessions from February 14, 2005 to June 30, 2005 was 131 barrels of oil per day. Gas and NGL production was 2.4 million cubic feet per day and 51 barrels per day respectively.

Immediately upon acquisition, Antrim and its partners commenced a comprehensive 3D seismic survey covering over 300 km2 on the concessions. Information from the seismic survey is currently being reviewed and Antrim plans to participate in the drilling of four wells on the concessions prior to the end of the year.

United Kingdom Activities

Through a series of acquisitions and farm-out transactions, the Company has now finalized plans for a four well exploration program in the UK North Sea in the second half of 2005 and first half of 2006. The Company expects to be carried at no cost through the drilling of the first two wells in the program. Drilling rigs for the first three wells in the program have been secured and drilling operations are to be conducted by well known and established UK North Sea operators.

United Kingdom - Southern Gas Basin

The Company expects drilling operations to commence in early September 2005, subject to regulatory and other approvals, on Antrim's UK North Sea Prometheus Prospect, Blocks 42/21 and 42/22 in the Southern Gas Basin. Centrica Resources Limited (Operator) , a subsidiary of Centrica plc, has secured the Ensco 101 jackup rig to drill the exploratory well. The Prometheus Prospect will target the prolific Permian Leman Sandstone close to and on trend with the Ravenspurn gas fields that contain at least 1.6 Tcf initial recoverable gas reserves. The Prometheus well, which is expected to cost approximately Pounds Sterling 5.5 MM (Cdn. $12.0 MM), will be drilled to target depth at no cost to Antrim. Antrim's interest at the conclusion of the drilling operation will be 17.5%.

United Kingdom - Block 211/22a

Drilling operations on the Company's second well, "Clachnaben", in the northern sector of the UK North Sea are expected to commence in October 2005. The Clachnaben well will target the oil prone Jurassic Brent Sandstone in Block 211/22a adjacent to the Cormorant oil field and related export infrastructure. Dana Petroleum plc, the licence operator, has contracted the Bredford Dolphin semi-submersible drilling rig to drill the well. If drilling is successful, it is envisaged that a fast-track subsea tie-back development would be pursued jointly with the adjacent 211/22a-1 discovery which was drilled in 1977 and flowed 1280 bpd of 31 degree API oil. At that time, the 211/22a-1 well was plugged and abandoned as being uneconomic. Under a farmout agreement with Dana, the Clachnaben well will be drilled to the target formation at no cost to the Company. Antrim's interest at the conclusion of the drilling operation will be 21%.

Under the agreement and following Dana's earning well, Antrim will increase its working interest from 75.79% to 79% in the southeast portion of the Block which includes the prospective Osprey Ridge area. A discovery well (211/22a-3) drilled in 1984 on this portion of the block tested oil at 5,512 barrels of oil per day from a Jurassic reservoir. Antrim intends to drill an exploration well, the "Causeway" Prospect, on this portion of the Block in the first half of 2006.

Antrim's third drilling operation in the UK North Sea, the "Bennachie" prospect, is also expected to commence in the 4th Quarter 2005. The Bennachie well, operated by Nexen Petroleum U.K. Limited, will target the Jurassic Fulmar Sandstone approximately 1.5 kms from the original Bennachie discovery well 21/15a-2 which tested high quality 39 degree API oil at a stabilized rate of 4364 barrels per day and 2.67 MMcf/d of associated gas. Antrim will earn a 25% interest in the licence, including the original Bennachie discovery well. Gross drilling costs are expected to be approximately Pounds Sterling 7.7 MM (Cdn. $16.7 MM).

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 June 30, 2005 and December 31, 2004 (unaudited)
------------------------------------------------------------------------

2005 2004
$ $
------------ ------------
Assets
Current assets
Cash and cash equivalents 8,476,200 21,477,705
Accounts receivable 3,504,287 3,489,087
Inventory and other 1,610,084 199,445
------------ ------------
13,590,571 25,166,237

Petroleum and natural gas properties 17,562,433 9,791,904
Office equipment
- net of accumulated amortization of
$553,949 (2004 - $503,949)
128,633 165,767
Other assets 737,113 -
------------ ------------

Total Assets 32,018,750 35,123,908
------------ ------------
------------ ------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,345,014 4,163,522
Income taxes payable 267,851 677,867
------------ ------------
1,612,865 4,841,389

Future income taxes 33,838 33,838

Asset retirement obligation 603,558 284,882
------------ ------------
2,250,261 5,160,109

Shareholders' Equity

Share capital 46,325,307 45,813,132
Contributed surplus 734,748 495,718
Deficit (17,291,566) (16,345,051)
------------ ------------

29,768,489 29,963,799
------------ ------------

Total Liabilities and Shareholders'
Equity 32,018,750 35,123,908
------------ ------------
------------ ------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the periods ended June 30, 2005 and 2004 (unaudited)
------------------------------------------------------------------------
Three months ended June 30, Six months ended June 30,
2005 2004 2005 2004
$ $ $ $
------------------------- --------------------------
Revenue
Oil and gas sales 2,812,134 1,676,537 5,033,818 3,275,202
Royalties (367,908) (266,656) (655,242) (464,308)
------------ ------------ ------------- ------------
2,444,226 1,409,881 4,378,576 2,810,894

Interest and
other income 103,230 51,273 172,486 120,000
------------ ------------ ------------- ------------
2,547,456 1,461,154 4,551,062 2,930,894
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------

Expenses
Operating 898,539 290,076 1,439,306 703,376
General and
administrative 817,367 579,372 1,604,122 971,916
Stock based
compensation 105,820 89,598 239,030 160,918
Depletion and
depreciation 460,960 357,843 885,606 704,843
Accretion of asset
retirement obligations 15,300 8,300 30,422 16,800
Foreign exchange
loss (gain) 95,784 29,176 107,942 (15,289)
Write-off of
impaired assets 578,662 - 578,662 -
------------ ------------ ------------- ------------
2,972,432 1,354,365 4,885,090 2,542,564
------------ ------------ ------------- ------------

Income (loss) for the
year before income
taxes (424,976) 106,789 (334,028) 388,330

Income taxes (recovery)
Current 171,652 347,680 612,487 616,967
Future - - - -
------------ ------------ ------------- ------------

171,652 347,680 612,487 616,967
------------ ------------ ------------- ------------

Net Income (Loss)
for the Period (596,628) (240,891) (946,515) (228,637)

Deficit - Beginning
of Period (16,694,938) (10,746,658) (16,345,051) (10,758,912)
------------ ------------ ------------- ------------
Deficit
- End of Period (17,291,566) (10,987,549) (17,291,566) (10,987,549)
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------

Net Income (Loss)
Per Common Share
- Basic (0.01) (0.01) (0.02) (0.01)
Net Income (Loss)
Per Common Share
- Diluted (0.01) (0.01) (0.02) (0.01)


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: potter@antrimenergy.com
Website: www.antrimenergy.com