News

Dec 20, 2010 - 13:26 ET Antrim Energy Inc.: Agreements Signed for Exploration Licence in Tanzania

CALGARY, ALBERTA--(Marketwire - Dec. 20, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

Antrim Energy Inc. ("Antrim Energy") (TSX:AEN) (AIM:AEY) is pleased to announce that two agreements have been signed which are expected to lead to the resumption of exploration activities on the Production Sharing Agreement for the Pemba – Zanzibar exploration licence offshore and onshore Tanzania (the "P-Z PSA").

Antrim Energy has signed an agreement with Ras Al Khaimah Gas Tanzania Limited ("RAK Gas") and NOR Energy AS ("NOR") whereby Antrim Energy has replaced its previous right to be carried through the pre-drilling exploration phase of the P-Z PSA with a 20% carried interest through the pre-drilling phase and an additional 10% right to participate in the P-Z PSA to be exercised up to 180 days following receipt of the initial drilling results. The carried interests (up to 30%) are to be repaid from future production. Antrim Energy's previous option was acquired in 2006 as part of a sale of several assets to NOR, including its wholly owned subsidiary Antrim Resources (Tanzania) Limited.

Concurrent with this agreement, RAK Gas and NOR have entered into an agreement that provides RAK Gas with the option to acquire control of the P-Z PSA. As part of this agreement, RAK Gas has undertaken to re-negotiate the P-Z PSA exploration work programme with Tanzania Petroleum Development Corporation ("TPDC") and to secure access rights to the licence area from the relevant authorities.

The licence, which covers 3.5 million acres (14,060 km2), is in a highly prospective oil and gas region that has recently seen significant exploration activity. Licences on trend are held by Shell, Exxon Mobil, Statoil, Petrobras, Ophir Energy, British Gas and Tullow Oil. TPDC expects up to ten offshore wells will be drilled in offsetting licences in 2010 – 11, including a three well programme by Ophir - British Gas (two of which were drilled in 2010), two wells planned by Petrobras, one by Statoil, and one by Dominion. The two wells drilled by British Gas under a farmout with Ophir, the Pweza-1 well in October and the Chewa-1 well in December, were both announced by British Gas as gas discoveries.

The Pemba - Zanzibar block has a proven hydrocarbon system, as evidenced by the Tundaua oil seep on Pemba Island and oil shows in previous exploration wells. Multiple source rocks and petroleum reservoirs are anticipated and numerous prospects mapped. Approximately 75% of the licence lies in water depths of less than 200 metres, with the islands of Pemba and Zanzibar providing potential for on-shore directional drilling.

RAK Gas LLC is the state natural gas utility of the Emirate of Ras al Khaimah in the UAE. RAK Gas has interests in two offshore blocks in Ras al Khaimah as well as holding interests in exploration blocks in East Africa and Egypt, including the East Pande block in Tanzania.

Stephen Greer, President and CEO of Antrim Energy, commented: "We are very encouraged by the entry of RAK Gas into this licence. The Pemba-Zanzibar block has enormous exploration potential, and the area has recently been attracting considerable interest from major petroleum companies. We expect these two agreements, and the participation of RAK Gas in particular, will lead to a resumption of exploration activity on the Pemba-Zanzibar block in the near future."

About Antrim Energy Inc.

Antrim Energy Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada.

Antrim's strategy is to pursue a bilateral strategy of balancing longer term and capital-intensive investments in the UK North Sea with shorter investment cycle on-shore exploration and production opportunities. Antrim also considers other global exploration opportunities as they arise.

Additional information concerning Antrim Energy is available at www.antrimenergy.com. Investor inquiries may be directed to info@antrimenergy.com or 1-403-264-5111.

Forward-Looking Statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Antrim Energy Inc. When used in this announcement, the word "anticipate, expects, estimates" and similar expressions, and the negatives thereof, whether used in connection with drilling activity, reserves of neighboring properties or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Antrim's control. Please refer to Antrim's Annual Information Form for the year ended December 31, 2009 and dated March 23, 2010 and available for viewing at www.sedar.com, for a list of risk factors. Antrim's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Antrim will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Antrim or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release.

Qualified Person Review

In accordance with AIM guidelines, Mr. Terry Lederhouse, P. Eng and Vice President Commercial of Antrim, is the qualified person that has reviewed the technical information contained in this news release.


FOR FURTHER INFORMATION PLEASE CONTACT:

Antrim Energy Inc.
Stephen Greer
President & CEO
(403) 264-5111
(403) 264-5113 (FAX)
greer@antrimenergy.com
or
Antrim Energy Inc.
Scott Berry
Manager, Investor Relations
(403) 264-5111
(403) 264-5113 (FAX)
berry@antrimenergy.com
or
Antrim Energy Inc.
Terry Lederhouse
Vice President Commercial
(403) 264-5111
(403) 264-5113 (FAX)
lederhouse@antrimenergy.com
www.antrimenergy.com
or
Nominated Adviser on AIM:
RBC Capital Markets
Martin Eales
+44 (0) 20 7029 7881