News

Aug 14, 2008 - 18:37 ET Antrim Energy Inc. Announces 2008 Second Quarter Financial and Operational Results

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2008) - 

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

Antrim Energy Inc. ("Antrim" or "the Company") (TSX:AEN) (AIM:AEY), an international oil and gas exploration and production company, today reported its financial and operational results for the three and six month periods ended June 30, 2008.

HIGHLIGHTS:

- Continued drilling success in the UK North Sea

- Completed Cdn $50 million equity offering in July 2008

- Finalized US $50 million working capital facility in July 2008

- Continued drilling success and infrastructure development in Argentina

In the first half of 2008, Antrim drilled several successful wells on its UK North Sea properties the Fyne and Causeway Fields. In April 2008, the Antrim-operated multi-lateral drilling program on the Fyne Field in the UK Central North Sea encountered significant oil columns in each leg, with the final sidetrack 21/28a-9y well now cased to be used as a future production well. In the Northern North Sea, the Antrim operated 23d-18 well on the Causeway Field drilled a significant oil column, including a new oil accumulation in the Etive Formation. This well has been cased for use as a development well to provide pressure support to the 23d-17z discovery well, which previously tested at a combined rate of up to 14,500 barrels of oil per day (bopd).

In July 2008, appraisal drilling of the western lobe of the Fyne Field encountered 32 feet of net oil pay in the Eocene Tay Sandstone. The results from the 21/28a-10 well, combined with the results of the successful 21/28a-9 well and sidetracks and the previously drilled 21/28a-2 well, demonstrated reservoir and structural continuity across the field and the significant extent of the oil accumulation.

In August 2008, further appraisal of the Fyne Field by well 21/28a-10z (a sidetrack to 21/28a-10) encountered 60 feet of net oil pay in the Tay Sandstone. At the time of this report the well had been successfully completed and tested at rates up to 4,000 bopd. An additional 45 feet of gas pay was drilled in the Upper Tay Sandstone and remains untested. No oil/water contacts or gas/oil contacts were observed in either well. These test results are indicative of the very high reservoir quality Tay Sandstones drilled in this area.

Antrim plans to fund much of its growth in the UK with debt facilities. In July 2008, Antrim completed a Cdn $50 million equity financing and signed a US $50 million working capital facility with the Bank of Scotland. This working capital facility is available, subject to certain conditions, for pre-development costs associated with the Causeway, Fyne and Dandy Fields.

In Argentina, Antrim drilled eleven wells resulting in four oil and six gas wells. Quarterly production from Argentina declined slightly to 1,394 barrels of oil equivalent per day (boepd) from 1,503 boepd in the first quarter mainly due to a reduction in Tierra del Fuego gas sales and related liquid volumes. Sales were reduced in anticipation of the commissioning in September of the pipeline linking the Company's gas producing fields with the San Martin gas sales line across the Straits of Magellan. In the first quarter of 2008, Antrim changed its reporting currency from Canadian to US dollars. All comparative financial information has been translated and restated as if the US dollar had been used as the Company's reporting currency.

/T/

Financial and Operating Results
 (unaudited)                         Three Months Ended    Six Months Ended
                                             June 30,           June 30,
                                         2008      2007      2008      2007
----------------------------------------------------------------------------
Financial Results (US$000's except
 per share amounts)
-----------------------------------
Revenue                                 2,321     3,872     6,045     7,230
Cash flow from operations                (986)    1,720       453     2,516
Cash flow from operations per share     (0.01)     0.02      0.00      0.03
Net income (loss)                      (3,564)   (3,330)   (4,372)   (4,414)
Net income (loss) per share - basic     (0.03)    (0.01)    (0.04)    (0.05)
Working capital                        34,063    99,841    34,063    99,841
Expenditures on petroleum and natural
 gas
 properties                            35,605    22,748    52,252    25,791
Debt                                        -         -         -         -

Common Shares Outstanding (000's)
-----------------------------------
End of period                         117,815   107,712   117,815   107,712
Weighted average - basic              117,708   102,245   117,645    95,290
Weighted average - fully diluted      120,344   104,604   120,281    97,650

Production
-----------
Oil , natural gas and NGL production
 (boe per day)(1)                       1,394     1,586     1,448     1,545


(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.

/T/

OVERVIEW OF OPERATIONS

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

In July 2008, Antrim completed drilling of the Causeway well 211/23d-18 (Antrim 65.5% and operator) in the UK Northern North Sea. The 23d-18 well drilled a significant oil column, including a new oil accumulation in the Etive Formation. The well was drilled directionally, 93 feet structurally below well 23d-17z, and penetrated an oil column of 50 feet with 25 feet TVD net oil pay in the Ness Formation and an oil column of 15 feet with 8 feet TVD net oil pay in the underlying Etive Formation. Porosity and permeability measurements indicate high quality reservoirs with average porosity of 20% and permeability measured up to approximately 800 mD.

Modular Dynamics Testing over the oil bearing sandstones in both formations flowed light oil with no water. The equivalent Ness section in the discovery well tested light oil (32 degrees API) at rates up to 7,000 bopd with no water. The Etive section in 23d-18 represents a new oil accumulation not previously reported from this area of the Causeway structure.

The 23d-18 well has been cased and will be retained as a development well to provide pressure support to the 23d-17z discovery well, which tested at a combined rate of up to 14,500 bopd.

There are no additional wells planned before oil is produced under the proposed phase of the development. Preparation of a Field Development Plan (FDP) to be submitted to the Department for Business Enterprise and Regulatory Reform (DBERR) is proceeding. Facility construction is planned once approval of the FDP is obtained.

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

In April 2008, Antrim completed drilling operations on the Antrim-operated (Antrim 75%) well 21/28a-9 on the Fyne Field in the UK Central North Sea. The multilateral 21/28a-9 well was drilled as planned with three legs, one pilot hole and two sidetracks into the Eocene Tay Sandstone. All three holes encountered significant oil columns. As originally designed, the final sidetrack 21/28a-9y has been cased to be used as a future production well.

Full analysis of the log and test data from 21/28a-9y indicated 65 feet net oil pay and 30 feet net gas pay. As designed, the well was drilled at a 60 degree angle resulting in wellbore measured thicknesses of 120 feet net oil pay and 47 feet net gas pay. The oil and gas pay intervals in Fyne are separate with the gas pay confined to the Upper Tay Formation and the oil pay contained within several sandstones in the Middle and Lower Tay Formations.

In July 2008, appraisal drilling of the western lobe of the Fyne Field encountered 32 feet of net oil pay in the Eocene Tay Sandstone. The results from the 21/28a-10 well are similar to the Fyne discovery well 21/28a-2, which tested up to 3,600 bopd from 30 feet of reservoir section.

In August 2008, a sidetrack to well 21/28a-10 (21/28a-10z) was drilled to the southeast of this location. At the time of this report the well had been successfully completed and tested at rates up to 4,000 bopd. An additional 45 feet of gas pay was drilled in the Upper Tay Sandstone and remains untested. No oil/water contacts or gas/oil contacts were observed in either well. These test results are indicative of the very high reservoir quality Tay Sandstones drilled in this area. It is anticipated that the sidetrack would be the final drilling operation before the Fyne partnership would apply for FDP approval from DBERR.

The Fyne Field is on trend with several other Tay fields in the area, including the Guillemot, Pict and Saxon developments. Oil from the Fyne Field, similar to adjacent fields, is likely to be produced through a Floating Production Storage and Offloading (FPSO) system and Antrim is actively searching for a suitable vessel. Fyne is situated approximately 20 kilometres from existing infrastructure which provides production services for several fields in the area.

United Kingdom - Block 211/22a North West ("Kerloch")

In late 2007, Antrim participated in drilling the non-operated Kerloch prospect in Block 211/22a North West. The well, approximately 10 km northwest of Causeway, discovered a net 116 foot thick oil section in the Ness Formation. The Kerloch well was not tested and was retained to allow for potential re-entry and future use. Further technical evaluation of the prospect will be undertaken in 2008. Antrim holds a 21% working interest in Block 211/22a North West.

Argentina - Tierra del Fuego, Austral Basin

In September 2007, Antrim announced the start of its planned two-year drilling program in Tierra del Fuego. To date, Antrim is drilling the 17th well on the concessions. Well completions are slightly behind the number of discoveries as the proprietary completion and workover rig is undergoing a programmed general maintenance and inspection. The completion and workover rig will be back in service shortly. As reported in the previous quarterly, six wells have targeted the Los Patos oil pool discovered in 2006. Of these wells, four wells have been completed and placed on production and a further well is awaiting completion. One well had mechanical problems and could not be salvaged. The Las Violetas oil pool has had three wells drilled of which two are in production and the third is also waiting on completion. An additional six wells have been drilled targeting gas in the Los Patos (1), Los Flamencos (4), and San Luis (1) fields, of which four have been tested and the remaining two are waiting on completion. The remaining well, Angostura Sur x-1001, targeted a new four way structural closure approximately 15 kilometres to the North West of the Las Violetas pool. The well has been recently cased and has been completed in the Tobifera reservoir which, on swab, tested 270 bls/day of 26ยบ API oil. There are 10 metres of additional potential pay to be tested in the Springhill reservoir, but it was decided to postpone the Springhill completion and put the Tobifera reservoirs on pump to further evaluate this new discovery in the basin. Gas development, including the installation of additional treatment and compression facilities, is being undertaken in anticipation of the completion later this year of improved gas transportation capacity from the Tierra del Fuego concessions.

In June 2008, Antrim commenced a 3-D seismic program totaling over 137 square kilometres (km2) over the Gaviotas prospect in the Angostura concession and the Puesto Quince prospect in the Las Violetas concession. The acquisition of seismic has been completed and the data is now being processed. Delivery of the final data set for interpretation is anticipated for September.

First stage commissioning of the pipeline linking the Company's gas producing fields with the San Martin gas sales line across the Straits of Magellan is expected to be completed in September. Completion of this pipeline will enable the Company to redirect and deliver gas to the continent where higher prices are available. Expansion of gas processing facilities and installation of additional compression facilities is in progress and is expected to be completed by the third quarter of 2008. Upon completion, gross gas processing capacity is expected to increase to approximately 40 million cubic feet per day (mmcf/d) at which time previous gas discoveries can be placed on production. 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 half of 2008 was 1,121 boepd compared to 1,210 boepd for the comparable period in 2007. Net oil production in the first half of 2008 was 307 bopd compared to 338 bopd for the comparable period in 2007. Gas and natural gas liquids (NGL) production in the first half of 2008 was 4.5 mmcf/d and 71 barrels per day, respectively. Gas and NGL production for the comparable period in 2007 was 4.8 mmcf/d and 63 barrels per day, respectively. Production decreased for the six month period ended June 30, 2008, compared to 2007, in anticipation of the commissioning in September of the pipeline linking the Company's gas producing fields with the San Martin gas sales line across the Straits of Magellan.

Argentina - Medianera and Tres Nidos Sur, Neuquen Basin

Net production to Antrim from the Medianera licence in the first half of 2008 was 59 bopd compared to 27 bopd for the comparable period in 2007. Antrim is planning a multi-well follow-up drilling program on the licence in 2008. Antrim has a 70.0% working interest in the Medianera and Tres Nidos Sur licences. Under the terms of the Tres Nidos Sur licence, Antrim must acquire a minimum of 50 km2 of 3D seismic in 2008 and drill an exploration well in 2009. Required permitting and environmental studies for the 3D seismic acquisition are underway.

Argentina - North West Basin

On the Capricorn licence, testing of the Lomas de Guayacan x-1 well of the Martinez del Tineo Oeste Prospect was completed. No commercial production of oil or gas was found in the well. The joint venture is completing an evaluation of further potential for the project, based upon oil and gas shows noted during drilling and testing. The two exploration wells drilled on the Capricorn licence were drilled pursuant to a farm-out agreement under which the Company retained a 37.5% working interest in the licence by paying 25% of the cost of the two wells.

Net production to Antrim from the Puesto Guardian licence in the first half of 2008 was 268 bopd compared to 308 bopd for the comparable period in 2007. Production decreased in 2008 compared to 2007 due to fewer workovers in the current year. Antrim has a 40% working interest in the Puesto Guardian licence.

CORPORATE

At the Annual General Meeting, Mr. Colin Maclean was elected as a Non-Executive Director of Antrim. We are pleased to welcome Colin to the Board and look forward to his guidance based on his extensive international and corporate experience.

As previously announced, Mr. Anthony Potter resigned as Chief Financial Officer and Corporate Secretary. We would like to thank Mr. Potter for his significant contributions to Antrim over the past five years. In July, Mr. Douglas Olson joined Antrim as Chief Financial Officer and brings over thirty years of financial management experience to Antrim.

Dr. Brian Moss has joined Antrim as Executive Vice-President, Latin America. Dr. Moss brings valued operational and executive management experience in Latin America to Antrim. Dr. Moss will also continue in his role as Director on the Board.

Mr. Tim Haney has been appointed Corporate Secretary. Mr. Haney practices law with Burstall Winger LLP and has been providing legal services to Antrim over the past two years.

Antrim's 2008 second 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.

About Antrim

Antrim Energy Inc. is a Canadian, Calgary based high-growth junior oil and gas exploration and production company with assets in the UK North Sea and Argentina. Antrim is listed on the Toronto Stock Exchange (AEN) and on the London Stock Exchange's Alternative Investment Market (AEY). Visit www.antrimenergy.com for more information.

Forward-Looking Statements

This news release contains certain forward-looking statements, which include assumptions with respect to future plans, results and capital expenditures. Cumulative volumes are not necessarily representative of future production volumes. 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, 2007 and dated March 31, 2008 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. Kerry Fulton, P. Eng and Chief Operating Officer of Antrim, is the qualified person that has reviewed the technical information contained in this news release.

/T/

Antrim Energy Inc. 
Consolidated Balance Sheets
As at June 30, 2008 and December 31, 2007 (unaudited)
----------------------------------------------------------------------------
                                                        2008           2007
                                                        US $           US $
                                                -------------  -------------
Assets
Current assets
Cash and cash equivalents                         27,995,424     98,794,077
Restricted cash (note 4)                          27,618,759      6,791,941
Accounts receivable                                4,533,437      5,035,160
Inventory and prepaid expenses (note 5)            1,266,838        842,497
                                                -------------  -------------
                                                  61,414,458    111,463,675

Petroleum and natural gas properties (note 6)    237,370,370    189,890,781
Office equipment                                     801,078        559,673
Future income taxes                                1,372,234        911,783
Investments and other non-current assets 
 (note 7)                                          5,082,312      4,568,955
                                                -------------  -------------

Total Assets                                     306,040,452    307,394,867
                                                -------------  -------------
                                                -------------  -------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities          27,351,675     22,539,789
                                                -------------  -------------
                                                  27,351,675     22,539,789

Asset retirement obligation                       12,995,669      9,650,649
                                                -------------  -------------
                                                  40,347,344     32,190,438

Commitments and contingencies (note 12)

Shareholders' Equity

Share capital (note 8)                           263,178,138    262,600,117
Contributed surplus (note 9)                       8,927,645      6,706,403
Deficit                                          (28,367,927)   (23,996,226)
Accumulated other comprehensive income            21,955,252     29,894,135
                                                -------------  -------------

                                                 265,693,108    275,204,429
                                                -------------  -------------

Total Liabilities and Shareholders' Equity       306,040,452    307,394,867
                                                -------------  -------------
                                                -------------  -------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the periods ended June 30, 2008 and 2007 (unaudited)
----------------------------------------------------------------------------

                       Three Months Ended June 30, Six Months Ended June 30,
                                2008         2007         2008         2007
                                US $         US $         US $         US $
                        -------------------------- -------------------------

Revenue
Oil and gas sales          2,321,381    3,872,016    6,045,330    7,229,701
Royalties                   (338,834)    (490,648)    (777,379)    (883,671)
Export tax                  (133,904)    (551,351)    (183,636)  (1,093,805)
                        ------------- ------------ ------------ ------------

                           1,848,644    2,830,017    5,084,316    5,252,225

Interest and other
 income                      725,495    1,131,135    1,912,508    1,731,120
                        ------------- ------------ ------------ ------------

                           2,574,139    3,961,152    6,996,824    6,983,345
                        ------------- ------------ ------------ ------------

Expenses
Operating                  1,327,317      944,139    2,371,967    1,621,066
General and
 administrative            2,260,491    1,213,129    4,259,281    2,501,295
Stock-based compensation   1,203,684      831,662    2,361,473    1,551,064
Depletion and
 depreciation              1,192,014    1,031,507    2,422,127    1,880,174
Accretion of asset
 retirement
 obligations                 293,034       47,777      528,945       92,594
Foreign exchange (gain)
 loss                        379,871    3,229,883     (125,375)   3,704,047
                        ------------- ------------ ------------ ------------

                           6,656,411    7,298,097   11,818,418   11,350,240
                        ------------- ------------ ------------ ------------

Loss for the period
 before income  taxes     (4,082,272)  (3,336,945)  (4,821,594)  (4,366,895)

Income tax expense
 (recovery)
Current                       36,473       16,667       36,637       80,396
Future                      (554,764)     (23,476)    (486,530)     (33,615)
                        ------------- ------------ ------------ ------------

                            (518,291)      (6,809)    (449,893)      46,781
                        ------------- ------------ ------------ ------------

Net Loss                  (3,563,981)  (3,330,136)  (4,371,701)  (4,413,676)
Deficit - Beginning of
 Period                  (24,803,946) (16,652,141) (23,996,226) (15,568,601)
                        ------------- ------------ ------------ ------------
Deficit - End of Period  (28,367,927) (19,982,277) (28,367,927) (19,982,277)
                        ------------- ------------ ------------ ------------
                        ------------- ------------ ------------ ------------

Net Loss Per Common
 Share - Basic                 (0.03)       (0.03)       (0.04)       (0.05)
Net Loss Per Common
 Share
 Diluted                       (0.03)       (0.03)       (0.04)       (0.05)



Antrim Energy Inc.
Consolidated Statements of Comprehensive Income (Loss) and Accumulated 
 Other Comprehensive Income (Loss) 
For the periods ended June 30, 2008 and 2007 (unaudited)
----------------------------------------------------------------------------

                       Three Months Ended June 30, Six Months Ended June 30,
                                2008         2007         2008         2007
                                US $         US $         US $         US $
                        -------------------------- -------------------------
Net loss for the period   (3,563,981)  (3,330,136)  (4,371,701)  (4,413,676)
Other Comprehensive
 Income (Loss)
 Unrealized gain (loss) on
  translation of
  consolidated
  financial statements
  into reporting currency  3,164,279   14,655,494   (7,938,883)  15,960,884
                        ------------- ------------ ------------ ------------

Comprehensive Income
 (Loss)                     (399,702)  11,325,358  (12,310,584)  11,547,208
                        ------------- ------------ ------------ ------------
                        ------------- ------------ ------------ ------------

Accumulated Other
 Comprehensive Income
 (Loss) - Beginning of
 Period                   18,790,973     (864,637)  29,894,135   (2,170,027)
Other comprehensive
 income (loss)             3,164,279   14,655,494   (7,938,883)  15,960,884
                        ------------- ------------ ------------ ------------

Accumulated Other
 Comprehensive Income
 (Loss) - End of Period   21,955,252   13,790,857   21,955,252   13,790,857
                        ------------- ------------ ------------ ------------
                        ------------- ------------ ------------ ------------


Antrim Energy Inc.
Consolidated Statements of Cash Flows
For the periods ended June 30, 2008 and 2007 (unaudited)

                     Three months Ended June 30,   Six months Ended June 30,
                              2008         2007         2008           2007
                              US $         US $         US $           US $
                    ------------------------------ -------------------------
Operating Activities
Net loss for the
 period                 (3,563,981)  (3,330,136)  (4,371,701)    (4,413,676)
Items not involving
 cash:
 Depletion and
  depreciation           1,192,014    1,031,507    2,422,127      1,880,174
 Accretion of asset
  retirement obligations   293,034       47,777      528,945         92,594
 Stock-based
  compensation expense   1,203,684      831,662    2,361,473      1,551,064
 Foreign exchange loss
  (gain)                   444,292    3,162,994       (1,130)     3,439,133
 Future income taxes      (554,764)     (23,476)    (486,530)       (33,615)
                       ------------  -----------  ----------   -------------

                          (985,721)   1,720,328      453,184      2,515,674
Change in non-cash
 working capital items     833,104    1,265,909      700,525        667,993
                       ------------  -----------  ----------   -------------

                          (152,618)   2,986,237    1,153,708      3,183,667
                       ------------  -----------  ----------   -------------

Financing Activities
Issue of common shares     350,199   54,189,456      387,921     74,322,046
Share issue expenses       (21,197)  (2,568,018)     (26,295)    (2,594,560)

                           329,003   51,621,438      361,627     71,727,486
                       ------------  -----------  ----------   -------------

Investing Activities
Office equipment          (163,075)     (33,981)    (396,185)      (145,624)
Petroleum and natural
 gas properties        (35,605,166) (22,747,586) (52,252,229)   (25,790,548)
Restricted cash         (5,488,339) (44,093,428) (21,120,581)   (44,093,428)
Other current assets             -      175,772            -        441,929
Other non-current
 assets                   (310,823)    (226,063)    (647,304)      (281,267)
Change in non-cash
 working capital items  (2,049,189)  32,887,040    4,511,759     34,484,883
                       ------------  -----------  ----------   -------------

                       (43,616,593) (34,038,246) (69,904,541)   (35,384,055)
                       ------------  -----------  ----------   -------------

Effect of exchange
 rate changes on cash
 and short term
 deposits                 (615,538)  (3,559,200)     276,245  (3,802,817.00)
Net effect of foreign
 exchange translation
 on cash flows             867,340    6,600,757   (2,685,692)  7,258,026.00

Net increase
 (decrease) in cash
 and cash equivalents  (43,188,406)  23,610,986  (70,798,653)    42,982,307
Cash and Cash
 Equivalents - 
 Beginning of Period    71,183,830   65,463,685   98,794,077     46,092,364
                       ------------  -----------  ----------   -------------
Cash and Cash
 Equivalents - End
 of Period              27,995,424   89,074,671   27,995,424     89,074,671
                       ------------  -----------  ----------   -------------

Supplemental Cash Flow
 Information
Interest received          601,683    1,038,234    1,446,344      1,528,915
Taxes paid                  36,473      131,695       36,637        277,917

/T/


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. Douglas Olson Chief Financial Officer (403) 264 5111 (403) 264 5113 (FAX) Email: olson@antrimenergy.com Website: www.antrimenergy.com