News

Mar 31, 2005 - 20:52 ET Antrim Energy Inc. Reports 2004 Results

CALGARY, ALBERTA AND LONDON, UNITED KINGDOM--(CCNMatthews - March 31, 2005) - Antrim Energy Inc. (TSX:AEN) (AIM:AEY) ("Antrim") is pleased to report its financial and operational results for the year ended December 31, 2004.

Antrim showed strong growth in the year in both cash flow from operations and in reserves. Oil production in the year increased 21% while proved oil reserves from the Puesto Guardian field in Argentina at December 31, 2004 increased 25% over the prior year. Antrim incurred a loss in 2004 following the drilling of an exploration well offshore Australia and the recording of an accounting charge against the Company's Australian and Tanzania assets. The Company, however, exited the year with cash in excess of $20 million and no debt.

Operating results for 2004 do not include results from the Company's recent acquisition of an interest in the Tierra del Fuego Concession, Argentina. This acquisition, which was effective October 28, 2004 but did not close until February 14, 2005, is accretive on a cash flow, production and reserves basis. An independent engineering evaluation of the acquisition by Ryder Scott Company as at December 31, 2004 attributes net proved plus probable reserves to Antrim of 5.2 million BOE (note 1). The cost of the acquisition, which was funded entirely from existing working capital, was approximately US$5.7 million. 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 of the Tierra del Fuego Concession significantly adds to Antrim's production base and provides the Company with a second core producing asset. The acquisition changes Antrim's production profile from over 90% oil production to approximately 60% oil and 40% gas and natural gas liquids on a BOE basis. While current gas production is sold to residential and industrial markets at an average price of US$0.60 per mcf and is significantly below the price for gas in North American energy markets, modest increases in long term gas prices are expected. Significant upside potential from development activities is anticipated and a 3D seismic acquisition program is currently underway.

The re-inforcement and additions to Antrim's production base, recent strategic farm-outs in the North Sea with major industry partners and a strong balance sheet have effectively placed the Company in a position where it can fulfill its stated goal of participation at high working interests in high risk/high reward drilling opportunities. More information about Antrim's properties and year end reserve evaluation is included in Antrim's Annual Information Form dated March 31, 2005 which has been filed on the System for Electronic Document Analysis and Retrieval (SEDAR) and may be found at www.sedar.com.

FINANCIAL AND OPERATING RESULTS

Financial Results                            2004       2003       2002
($000's except per share amounts)       --------------------------------


Oil and gas revenue                      $  6,900   $  5,142   $  5,997
Cash flow from operations                     400       (211)     1,451
Cash flow from operations per share          0.01      (0.01)      0.07
Net earnings (loss)                        (5,586)    (2,987)     1,102
Net earnings (loss) per share               (0.16)     (0.15)      0.06
Total assets                               35,124     25,988     20,628
Working capital                            20,325     15,344     10,974
Capital expenditures                        6,362      4,436      1,474
Debt                                     $      -   $      -   $      -

Common shares outstanding 
(000's) 
End of year                                39,487     31,302     20,049
Weighted average - basic                   33,966     20,505     20,001
Weighted average - fully diluted           34,644     21,521     20,711

Production 
Oil and natural gas production
 (BOE per day)                                491        405        466

OIL AND GAS REVENUE

Oil and gas revenue increased to $6,899,965 in 2004 compared to $5,141,596 in 2003. Oil and gas revenue increased due to an increase in average oil production to 468 barrels of oil per day compared to 382 barrels per day in 2003 and increased oil prices. Oil production increased following the implementation in the second half of 2003 of a pressure maintenance scheme and workover program. A second workover program commenced in August 2004 which further increased production. Oil production in the fourth quarter of 2004 was 508 barrels of oil per day compared to 429 barrels for the comparable period in 2003.

Oil prices averaged $38.66 per barrel in 2004 compared to $34.80 per barrel in 2003. Oil revenues, positively impacted by higher world crude oil prices, have been negatively impacted by the strengthening Canadian dollar compared to the US dollar. In addition, in May and August 2004 the Argentine government mandated that the previous 10% discount on domestic oil sales be increased to 20% when the price of West Texas Intermediate ("WTI") crude oil is equal to US$36.00 per barrel to a high of approximately 30% when the price of WTI crude oil is equal to or greater than US$46.00 per barrel. Should WTI be less than US$36.00 per barrel, the mandated discount is now 14%. No pricing hedges were entered into in 2004 or 2003.

Oil and gas revenues before royalties were as follows:

                                  2004                       2003
                        ------------------------------------------------
Country                  Revenue $       BOE        Revenue $       BOE
------------------------------------------------------------------------
Argentina                6,601,626   170,754        4,852,696   139,459
Czech Republic             298,339     8,459          288,900     8,221
------------------------------------------------------------------------
Total                    6,899,965   179,213        5,141,596   147,680
------------------------------------------------------------------------
------------------------------------------------------------------------

NETBACKS

Higher commodity prices and lower per unit operating costs resulted in Antrim realizing a higher per unit netback of $25.85/BOE in 2004 compared to a per unit netback of $19.52/BOE in 2003. The table below provides a comparative analysis of field netbacks for 2004 compared to 2003.

                                        Twelve Months Ended December 31,
                                                 2004              2003 
                                        --------------------------------
Wellhead price ($/BOE)                          38.50             34.82
Royalties ($/BOE)                               (5.42)            (4.64)
Operating expenses ($/BOE)                      (7.22)           (10.66)
                                        --------------------------------
Netback ($/BOE)                                 25.85             19.52
                                        --------------------------------
                                        --------------------------------
Oil and natural gas production (BOE)          179,213           147,680
                                        --------------------------------
                                        --------------------------------

While the average price of WTI increased 33% in 2004 to US$41.45 compared to US$31.10 in 2003, the Company's wellhead price increased by only 11% due to a stronger Canadian dollar and a higher discount on domestic oil sales in Argentina.

CASH FLOW AND NET INCOME

Antrim generated net cash flow from operations of $399,842 ($0.01 per share) in 2004 compared to cash outflow of $210,890 ($0.01 per share) in 2003. Cash flow from operations increased due to higher oil and gas revenues. Cash flow from operations and cash flow from operations per share does not have a standard meaning under generally accepted accounting principles ("GAAP") and may not be comparable to other companies. Management believes that cash flow is a useful supplementary measure that may assist investors.

The Company recorded a net loss of $5,586,139 ($0.16 per share) in 2004 compared to net loss of $2,986,648 ($0.15 per share) the previous year. Net loss increased primarily as a result of the write-down in 2004 of costs associated with the drilling of the South Galapagos #1 well offshore Australia, impairment of the costs associated with the Company's Tanzanian Production Sharing Agreement ("PSA") and higher general and administrative and foreign currency costs.

The Company recorded a write-down in 2004 of $1,190,649 with respect to its Tanzania property as a result of the application of CICA AcG - 11 "Enterprises in the Development Stage" which requires a write-down of capitalized costs when there has been a delay in development activity that extends beyond three years. Since the lifting of force majeure in April 2002, a dispute between the federal and provincial governments in Tanzania has prevented the Company from incurring the expenditures set out in the PSA governing the significant acreage held by the Company in Tanzania. The Company anticipates that once the dispute between the federal and provincial governments is resolved, the Company will have access to the full first and second two year exploration periods set out in the PSA.

FINANCIAL RESOURCES AND LIQUIDITY

As at December 31, 2004, the Company had working capital of $20,324,848 (2003 - $15,343,761), including cash of $21,477,705 (2003 - $15,136,075) and no bank debt.

The Company intends to focus its activities in 2005 on two primary areas, Argentina and the United Kingdom.

In February 2005 the Company completed the acquisition of a 25.78% working interest in three producing exploitation concessions in the Tierra del Fuego region of Argentina. The cost of the acquisition was approximately US$5.7 million after closing adjustments and was funded from existing working capital. In addition, the Company provided a US$1.5 million loan to the operator of the concessions secured by and to be repaid from production from the concessions. The acquisition, which added approximately 140 barrels of oil, 2.6 mmcf of natural gas and 60 barrels of LPG (butane and propane) per day to Antrim production, is expected to result in increased revenue and cash flow in 2005.

As a result of farmout 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. The success of these wells will determine the pace at which the Company and its joint venture partners seek to drill additional wells on the Company's licences. As in Argentina, the Company seeks to participate in additional exploration and development opportunities in the United Kingdom. The Company seeks new oil and gas properties that offer significant working interests with low entry costs and established infrastructure. However, a significant acquisition of this nature would likely require raising additional equity and or debt financing.

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

Note 1. A BOE conversion ratio of 6 Mcf = 1 bbl has been used. BOEs may be misleading, particularly if used in isolation. A 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 Energy Inc. 
Consolidated Balance Sheets 
As at December 31, 2004 and 2003

                                                     2004          2003 
                                                        $             $ 
                                             ---------------------------
                                                              (restated)
Assets 

Current assets 
Cash and short-term deposits                   21,477,705    15,136,075
Accounts receivable                             3,489,087     1,038,046
Inventory and other                               199,445       618,793
                                             ---------------------------

                                               25,166,237    16,792,914

Petroleum and natural gas properties            9,791,904     9,003,637

Office equipment - net of accumulated
 amortization of $503,949 (2003 - $380,620)       165,767       191,466
                                             ---------------------------

                                               35,123,908    25,988,017
                                             ---------------------------
                                             ---------------------------

Liabilities 

Current liabilities 
Accounts payable and accrued liabilities        4,163,522     1,447,908
Income taxes payable                              677,867         1,245
                                             ---------------------------

                                                4,841,389     1,449,153

Future income taxes                                33,838        66,443

Asset retirement obligation                       284,882       337,669
                                             ---------------------------

                                                5,160,109     1,853,265
                                             ---------------------------

Shareholders' Equity 

Capital stock                                  45,813,132    34,772,554
Contributed Surplus                               495,718       121,110
Deficit                                       (16,345,051)  (10,758,912)
                                             ---------------------------

                                               29,963,799    24,134,752
                                             ---------------------------

                                               35,123,908    25,988,017
                                             ---------------------------
                                             ---------------------------



Antrim Energy Inc. 
Consolidated Statements of Income (Loss) 
As at December 31, 2004 and 2003
                                       2004          2003          2002 
                                          $             $             $
                               -----------------------------------------
                                                (restated)    (restated)
Revenue 
Oil and gas                       6,899,965     5,141,596     5,996,959
Royalties                          (972,063)     (685,127)     (824,610)
                               -----------------------------------------

                                  5,927,902     4,456,469     5,172,349

Interest and other income           326,083       186,673       214,782
                               -----------------------------------------

                                  6,253,985     4,643,142     5,387,131 
                               -----------------------------------------

Expenses 
Operating                         1,294,605     1,574,885       945,633
General and administrative        2,671,769     2,098,486     1,441,994
Stock based compensation            374,608       121,110             -
Depletion and depreciation        1,402,458       988,209     1,273,031
Accretion of asset
 retirement obligations              33,767        40,993        26,970
Foreign exchange loss               636,295       228,739       641,003
Write off of impaired assets      4,207,763     2,399,575     1,550,597
                               -----------------------------------------

                                 10,621,265     7,451,997     5,879,228
                               -----------------------------------------

Income (loss) before below
 noted dispositions and
 income taxes                    (4,367,280)   (2,808,855)     (492,097)
Gain on disposition of
 petroleum and natural
 gas properties                           -        63,614     1,906,879
                               -----------------------------------------

Income (loss) for the year
 before income taxes             (4,367,280)   (2,745,241)    1,414,782

Income taxes (recovery)  
Current                           1,251,464       951,922       907,508
Future                              (32,605)     (710,515)     (594,711)
                               -----------------------------------------

                                  1,218,859       241,407       312,797
                               -----------------------------------------

Net income (loss) for the year   (5,586,139)   (2,986,648)    1,101,985

Deficit - Beginning of year
 as previously reported         (10,758,912)   (7,772,264)   (8,854,840)
Retroactive Adjustment for
 Change in Accounting Policy              -             -       (19,409)
                               -----------------------------------------
Deficit - End of year           (16,345,051)  (10,758,912)   (7,772,264)
                               -----------------------------------------
                               -----------------------------------------

Net income (loss)
 per common share: 
 Basic                                (0.16)        (0.15)         0.06
 Diluted                              (0.16)        (0.15)         0.06

FOR FURTHER INFORMATION PLEASE CONTACT:

Antrim Energy Inc.
Stephen Greer
President & CEO
(403) 264-5111
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