News

May 15, 2007 - 19:28 ET Antrim Energy Inc. Announces 2007 First Quarter Financial and Operational Results

CALGARY, ALBERTA and LONDON, UNITED KINGDOM--(CCNMatthews - May 15, 2007) - Antrim Energy Inc. (TSX:AEN) (AIM:AEY) ("Antrim") today reported its financial and operational results for the three month period ended March 31, 2007.

HIGHLIGHTS:

- Contracted rig to appraise Causeway oil discovery

- Commenced 3D seismic acquisition over Fyne & Dandy fields (second quarter)

- 57% increase in production over the comparable period in 2006

- Acquired additional 3D seismic in Tierra del Fuego, Argentina

- Secured drilling rigs for Tierra del Fuego and Medianera licences, Argentina

- Completed $57.5 million financing (second quarter)

Antrim made significant progress in the first quarter advancing drilling programs in the United Kingdom and Argentina. For the remainder of the year, Antrim expects to be drilling multiple targets in several of the Company's licence areas. Antrim's strong balance sheet provides confidence the Company has the financial resources to complete its 2007 drilling program in the United Kingdom and Argentina as planned.

In the United Kingdom, preparations are complete for the drilling of three wells designed to evaluate the potential of the Central Causeway fault compartment and appraise previous discoveries on the structure. Acquisition of 3D seismic over the Fyne and Dandy oil fields has commenced and plans are underway to drill the non-operated East Kerloch prospect on Block 211/22a northwest.

In Argentina, production over the comparable period in 2006 has increased significantly following the Company's successful 2006 drilling program in Tierra del Fuego. Further growth is planned based on the interpretation of 3D seismic acquired in 2006, the acquisition of new 3D seismic in the first quarter of 2007 and the contracting of drilling rigs for both the Tierra del Fuego and Medianera licences.



Three Months
Ended
March 31,
Financial and Operating Results (unaudited) 2007 2006
----------------------------------------------------------------------------
Financial Results ($000's except per share amounts)
---------------------------------------------------
Revenue 3,298 2,841
Cash flow from operations 608 1,243
Cash flow from operations per share 0.01 0.02
Net income (loss) (1,269) 546
Net income (loss) per share - basic (0.01) 0.01
Working capital 75,816 27,828
Capital expenditures 3,565 3,439
Debt - -

Common Shares Outstanding (000's)
---------------------------------
End of period 95,202 54,957
Weighted average - basic 88,258 54,921
Weighted average - fully diluted 91,574 57,834

Operating Results
-----------------
Wellhead price ($/BOE) 24.39 33.09
Royalties ($/BOE) (3.41) (4.22)
Operating expenses ($/BOE) (5.86) (8.20)
----------------
Netback ($/BOE) 15.12 20.67
----------------
----------------

Production
----------
Oil, natural gas and NGL production (BOE) 135,213 85,839
Oil , natural gas and NGL production (BOE per day)(1) 1,502 954

(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.

 


Net production to Antrim in the first quarter of 2007 was 1,502 boe per day compared to 954 boe per day in the first quarter of 2006. Average net oil production was 683 barrels of oil per day compared to 494 barrels of oil per day in the first quarter of 2006. Oil prices averaged $41.38 per barrel compared to $50.79 per barrel in the first quarter of 2006. Average net gas production in the first quarter of 2007 was 4.49 mmcf per day compared to 2.42 mmcf per day in the first quarter of 2006. Gas volumes increased significantly following completion in July 2006 of a 10 km high pressure gas pipeline. Sales gas prices in Argentina averaged $1.46 per mcf in the first quarter of 2007 compared to $1.24 per mcf in the first quarter of 2006.

Antrim generated cash flow from operations in the first quarter of 2007 of $608,221 ($0.01 per share) compared to cash flow from operations of $1,243,453 ($0.02 per share) in the first quarter of 2006. Net loss in the first quarter of 2007 was $1,269,302 ($0.01 per share) compared to a net income of $545,991 ($0.01 per share) in the first quarter of 2006. Net loss increased due to increased general and administrative costs, stock based compensation expense, higher depletion and higher foreign exchange losses.

At March 31 2007, Antrim had working capital of $75,816,102 (December 31, 2006 - $55,391,981) including cash of $75,636,840 (December 31, 2006 - $53,714,443) and no debt. Working capital increased following the exercise in the first quarter of 2007 of warrants issued by the Company in September 2005.

OVERVIEW OF OPERATIONS

United Kingdom - Block 211/22a South East and Block 211/23d ("Causeway")

Antrim intends to follow-up its 2006 East Causeway discovery on Block 211/23d with a drilling program of up to three wells commencing in May 2007. The first well in the program is planned to be drilled in the Central Causeway fault compartment and is intended to appraise each of the Jurassic Tarbert, Ness and Etive Sandstones. Antrim has contracted AGR Peak Well Management of Aberdeen and the semi-submersible drilling rig the Transocean Prospect for the drilling program. Antrim has operatorship and a 65.5% working interest in the south east area of Block 211/22a and in Block 211/23d.

United Kingdom - Block 211/22a North West

In March 2007, Antrim announced its plans to drill the non-operated East Kerloch prospect in Block 211/22a northwest area in the fourth quarter of 2007. Drilling operations are expected to commence in October 2007. The well is intended to target the oil prone Jurassic Brent Sandstones adjacent to the Cormorant oil field and related infrastructure. The proposed location is approximately 10 km northwest of the Causeway 211/23d-17z well drilled by Antrim in mid-2006. Antrim holds a 21% working interest in the northwest area of Block 211/22a.

United Kingdom - Block 21/28a ("Fyne and Dandy")

In November 2006, Antrim acquired a 75% working interest in Block 21/28a in the Central North Sea. The block contains the Fyne and Dandy oil fields, which have been delineated with eight wells drilled from 1971 to 1998. Antrim is operator of the block and is currently completing the acquisition of a 70 km2 3D seismic program which began in the second quarter of 2007. A decision on additional drilling will be reached by the fourth quarter of 2007, with a target of early 2008 for drilling the first development well. The cost of the licence acquisition in 2006 was US$8 million. Antrim has agreed to pay the seller an additional US$10 million on approval of a field development plan.

Argentina - Tierra del Fuego

Operations in the first quarter of 2007 have focused on infrastructure development and the acquisition of new 3D seismic. Existing gas processing facilities in Tierra del Fuego are not sufficient to process additional volumes created by the new gas discoveries and an expansion of gas processing facilities and installation of a pipeline that will connect the Las Violetas licence to the San Martin pipeline is in progress. The expansion, projected for completion in August 2007 and to be fully operational by October 2007, is expected to raise gross gas processing capacity to between 35 and 40 mmcf per day at which time previous gas discoveries are expected to be placed on production. Additional oil pipeline, storage and treatment facilities are also planned for 2007 to enable increased oil production.

In late 2006 and early 2007, the Company and its partners began the acquisition of 309 km2 of 3D seismic over the Angostura and Los Violetas licences. The 3D seismic program was initiated to expand target areas identified during the Company's successful 2006 drilling program. A drilling rig dedicated to the Tierra del Fuego licences has been contracted for the next two years. The Company anticipates that drilling on the licences will recommence in late June 2007. Antrim's working interest in the Tierra del Fuego licences is 25.78%.

Net production to Antrim from the Tierra del Fuego licences in the first quarter of 2007 was 1,155 boe per day compared to 574 boe per day in the first quarter of 2006. Net oil production in the first quarter of 2007 was 335 barrels of oil per day compared to 138 barrels of oil per day in the first quarter of 2006. Gas and natural gas liquids ("NGL") production in the first quarter of 2007 was 4.49 mmcf/d and 71 barrels per day, respectively. Gas and NGL production in the first quarter of 2006 was 2.28 mmcf/d and 56 barrels per day, respectively.

Argentina - Medianera

Antrim acquired a 70% working interest in the Medianera production licence in February 2006. The Medianera licence is located in central Argentina in the Neuquen Basin close to the Medanito and Barranca de los Loros fields. Antrim believes the licence has significant exploitation and exploration potential, both uphole and from deeper horizons. In 2006, Antrim acquired 83 km2 3D seismic over the entire licence. A drilling rig has been contracted and Antrim expects to commence drilling at least one exploration well on the licence targeting the deeper intervals in May 2007.

Net production to Antrim from the Medianera licence in the first quarter of 2007 was 25 barrels of oil per day.

Argentina - North West Basin

In September 2006, Antrim completed the acquisition of 330 km2 of 3D seismic in the Puesto Guardian licence in northern Argentina. Processing of the seismic data is expected to be completed in May 2007 after which interpretative work will begin. Antrim intends to use the newly acquired seismic to support a drilling program on the licence in 2007-2008. Antrim has a 40% working interest in the Puesto Guardian licence.

Net production to Antrim from the Puesto Guardian licence in the first quarter of 2007 was 323 barrels of oil per day compared to 357 barrels of oil per day in the first quarter of 2006.

In September 2006, Antrim completed the acquisition of 54 km2 of 3D seismic in the Capricorn licence. Processing of the seismic data has been completed and interpretative work has started. Antrim has a 50% working interest in the Capricorn licence, subject to the terms of a farm-out agreement entered into in October 2006 with respect to a portion of its interest in the licence. At least one exploration well is planned in 2007 subject to confirmation of a suitable drilling location, partner approvals and securing a drilling rig.

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. In accordance with AIM guidelines, Mr. Kerry Fulton, P. Eng and Chief Operating Officer of Antrim, is the qualified person that has reviewed the technical information contained in this press release.

Copies of Antrim's 2007 first quarter financial statements and related MD&A are available on Antrim's website at www.antrimenergy.com as well as on the SEDAR website at www.sedar.com.



Antrim Energy Inc.
Consolidated Balance Sheets
As at March 31, 2007 and December 31, 2006
(unaudited)
----------------------------------------------------------------------------

2007 2006
Cdn $ Cdn $
--------------------------

Assets
Current assets
Cash and cash equivalents 75,636,840 53,714,443
Accounts receivable 3,841,193 4,111,105
Inventory and prepaid expenses 565,537 498,298
Other current assets 265,580 577,367
--------------------------
80,309,150 58,901,213

Petroleum and natural gas properties 84,689,564 82,084,916
Office equipment 349,313 252,693
Future income taxes 275,140 263,263
Other non-current assets 3,713,883 3,649,215
--------------------------

Total Assets 169,337,050 145,151,300
--------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 4,287,834 3,207,383
Income taxes payable 205,214 301,849
--------------------------
4,493,048 3,509,232

Asset retirement obligation 2,360,827 2,308,327
--------------------------
6,853,875 5,817,559
Commitments

Shareholders' Equity

Share capital 176,961,294 153,176,930
Contributed surplus 4,983,787 4,349,415
Deficit (19,461,906) (18,192,604)
--------------------------

162,483,175 139,333,741
--------------------------

Total Liabilities and Shareholders' Equity 169,337,050 145,151,300
--------------------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and
Deficit
For the three months ended March 31, 2007 and 2006
(unaudited)
----------------------------------------------------------------------------

2007 2006
Cdn $ Cdn $
--------------------------

Revenue
Oil and gas sales 3,297,875 2,840,821
Royalties (460,403) (361,851)
--------------------------

2,837,472 2,478,970

Interest and other income 702,847 312,970
--------------------------

3,540,319 2,791,940
--------------------------

Expenses
Operating 792,979 704,276
General and administrative 1,509,009 647,631
Stock-based compensation 842,737 206,329
Depletion and depreciation 994,163 475,000
Accretion of asset retirement obligations 52,500 11,093
Foreign exchange loss 555,455 24,683
--------------------------

4,746,843 2,069,012
--------------------------

Income (loss) for the period before income taxes (1,206,524) 722,928

Income taxes
Current 74,655 171,897
Future (11,877) 5,040
--------------------------

62,778 176,937
--------------------------
--------------------------
Net Income (Loss) and Comprehensive Income (Loss) (1,269,302) 545,991
Deficit - Beginning of Period (18,192,604) (19,534,620)
--------------------------
Deficit - End of Period (19,461,906) (18,988,629)
--------------------------
Net Income (Loss) Per Common Share - Basic (0.01) 0.01
Net Income (Loss) Per Common Share - Diluted (0.01) 0.01


Antrim Energy Inc.
Consolidated Statements of Cash Flows

For the three months ended March 31, 2007 and 2006 (unaudited)
----------------------------------------------------------------------------

2007 2006
Cdn $ Cdn $
------------------------

Operating Activities
Net income (loss) for the period (1,269,302) 545,991
Items not involving cash:
Depletion and depreciation 994,163 475,000
Accretion of asset retirement obligations 52,500 11,093
Stock based compensation expense 842,737 206,329
Future income taxes (11,877) 5,040
------------------------

608,221 1,243,453
Change in non-cash working capital items (700,423) (1,102,187)
------------------------

(92,202) 141,266
------------------------

Financing Activities
Issue of common shares 23,584,127 70,546
Share issue expenses (31,092) -
------------------------

23,553,035 70,546
------------------------

Investing Activities
Office equipment (130,783) (25,874)
Petroleum and natural gas properties (3,564,648) (3,438,660)
Other current assets 311,787 210,538
Other non-current assets (64,668) (8,384)
Change in non-cash working capital items 1,909,876 (2,177,302)
------------------------

(1,538,436) (5,439,682)
------------------------

Net increase (decrease) in cash and cash
equivalents 21,922,397 (5,227,870)
Cash and Cash Equivalents - Beginning of Period 53,714,443 33,209,478
------------------------

Cash and Cash Equivalents - End of Period 75,636,840 27,981,608
------------------------

 
 

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)
Website: www.antrimenergy.com