News

Nov 16, 2009 - 02:01 ET Antrim Energy Inc. Announces 2009 Third Quarter Financial and Operational Results

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2009) - 

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 nine month periods ended September 30, 2009.

All financial figures are unaudited and in US dollars unless otherwise noted 

HIGHLIGHTS: 

- Increased average production in Argentina to 2,011 boepd in Q3, current production is 2,050 boepd

- Average gas price in Argentina increased 57% to $1.49 per mcf from $0.95 in Q3 2008

- Internal resource estimates indicate risked prospective resources of 29.7 MMbbls (low estimate), 54.9 MMbbls (best estimate) and 105.5 MMbbls (high estimate) in the recently acquired Greater Fyne Area

- Financial flexibility with strong cash position of US $31.3 million and no debt 

In the first nine months of 2009, average production in Argentina increased to 1,790 barrels of oil equivalent per day ("boepd") compared to 1,418 boepd in the same period of 2008.  Oil and gas revenue was $9.6 million for the nine months ended September 30, 2009 compared to $9.4 million for the same period in 2008.  Although revenue was essentially unchanged for the nine month period, higher gas production and gas prices were offset by lower oil prices in 2009 as compared to 2008.  Antrim generated cash flow from operations of $0.3 million for the nine months ended September 30, 2009 compared to $1.3 million for the same period in 2008.  Cash flow was negatively impacted in 2009, as compared to 2008, by lower interest and other income and higher operating expenses partially offset by lower general and administration expenses.  Due to increased gas volumes, current production in Argentina is approximately 2,050 boepd. 

Antrim has emerged from the global financial crisis in a strong fiscal position with $31.3 million in cash, no debt and is positioning itself to achieve production startup from the North Sea properties.  

The Company is currently undertaking an intensive effort to farm-out or sell a portion of its UK high working interest assets to reduce operational risk and fund the required production infrastructure.  A Field Development Plan ("FDP") for the Fyne Field is currently being constructed and is expected to be submitted in the first half of 2010.  

Antrim acquired interests in blocks in the 25th bid round that surround the Fyne Field.  Antrim continues to evaluate and develop an exploration strategy for these recently acquired licences.  The Company has identified drilling targets on these blocks, which if successful, could be tied in to a future Fyne production infrastructure.  Some of these additional targets are undeveloped oil discoveries drilled by previous operators.  Antrim holds 100% interest in each of these new licences.  Antrim estimates the range of total risked prospective resources on these licences to be 29.7 million barrels ("MMbbls") (low estimate), 54.9 MMbbls (best estimate) and 105.5 MMbbls (high estimate).  These prospective resources have been risked for chance of discovery but not for chance of development.  If a discovery is made, there is no certainty that it will be developed, or if it is developed, there is no certainty as to the timing of such development.  

In Argentina, commodity prices continue to rise, providing the company with renewed confidence in the region.  Antrim has identified eight wells targeting gas bearing reservoirs in Tierra del Fuego, which are being considered for drilling in 2010.  This along with increases in pipeline capacity in the latter half of 2010 should allow Antrim Argentina to exit 2010 with 20% higher production rates of approximately 2,500 boed.  


/T/

Financial and Operating Results (unaudited)

                                     Three Months Ended   Nine Months Ended
                                           September 30        September 30
                                         2009      2008      2009      2008
----------------------------------------------------------------------------
Financial Results ($000's except per
 share amounts)
Revenue                                 4,236     3,338     9,581     9,383
Cash flow from operations (1)             744       886       311     1,339
Cash flow from operations per
 share (1)                               0.01      0.01      0.00      0.01
Net (loss)                             (1,751)   (1,507)   (6,489)   (5,879)
Net (loss) per share - basic            (0.01)    (0.01)    (0.05)    (0.05)
Total assets                          287,794   328,911   287,794   328,911
Working capital                        33,725    49,671    33,725    49,671
Expenditures on petroleum and
 natural gas properties                 1,052    32,939     5,330    85,191
Debt                                        -         -         -         -

Common shares Outstanding (000's)
End of period                         135,281   135,054   135,281   135,054
Weighted average - basic              135,281   132,489   135,281   122,629
Weighted average - diluted            135,281   132,489   135,281   122,629

Production
Oil, natural gas and NGL production
 (boe per day) (2)                      2,011     1,358     1,790     1,418

(1) This is a non-GAAP measure (see MD&A)
(2) 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 - Blocks 21/28a, 21/24b, 21/24c, 21/28b and 21/29c ("Greater Fyne Area") 

The Greater Fyne Area, which includes the recently acquired surrounding blocks, has rapidly developed into Antrim's core operational area in the UK.  An FDP for the 20 million barrel (gross) Fyne Field block (21/28a) is being prepared.   Production systems and an export route are currently under evaluation including production through existing infrastructure located between 7 and 21km from the Fyne Field or the deployment of an independent floating production storage and offloading system ("FPSO").  The Fyne Field forms the core of this group of Antrim owned and operated licences in the Central North Sea including several licences awarded in the recent UK 25th Seaward Licensing Round (blocks 21/24b, 21/24c, 21/28b and 21/29c). 

As previously announced, Antrim has completed its internal resource estimates for these additional licences.  Antrim holds 100% interest in these licences and has estimated the range of total risked prospective resources to be 29.7 MMbbls (low estimate), 54.9 MMbbls (best estimate) and 109.9 MMbbls (high estimate).  These prospective resources are risked for chance of discovery but not for chance of development.  If a discovery is made, there is no certainty that it will be developed, or if it is developed there is no certainty as to the timing of such development.  

Antrim is continuing the work program on the four blocks awarded in the Licensing Round.  The Company is purchasing 3D seismic data over each of the licences and plans to selectively process this seismic data to further evaluate the three existing undeveloped discoveries as well as the identified prospects.  Antrim will apply the experience gained in the Fyne Field to evaluate these blocks for Tay Sandstone reservoir potential as well as deeper oil targets.  

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

Further reservoir engineering work has been performed on Antrim's Causeway Field including incorporating the results of recent geological and geophysical work using reprocessed Causeway 3D seismic data.  Antrim's plan is to submit a revised FDP in the first half of 2010, which would incorporate the benefits from cost reductions it has identified.   

There are no additional wells planned before oil is produced under the proposed first phase of the development which will involve production from the 2006 discovery well 211/23d-17z supported by the pressure maintenance well 211/23d-18 drilled in 2008.  Facility construction commitments will not be undertaken until these commitments are fully funded.

Argentina - Tierra del Fuego, Austral Basin 

Net production to Antrim from the Tierra del Fuego licences in the nine months ended September 30, 2009 increased 41% to 1,556 boepd compared to 1,102 boepd for the same period in 2008.  Gas and natural gas liquids ("NGL") production in the third quarter of 2009 was 8.4 mmcf/d and 64 barrels per day, respectively, compared to 4.4 mmcf/d and 44 barrels per day in the same period in 2008.

The pipeline linking the Company's gas producing fields with the San Martin gas sales line across the Straits of Magellan has enabled Antrim to redirect and deliver gas to the continent where higher prices are available.  The system is currently delivering 27.1 (net 7.0) million cubic feet per day (mmcf/d) to mainland markets compared to 24.3 (net 6.3) mmcf/d at the end of the second quarter of 2009.  

Net oil production in the first nine months of 2009 was 303 bopd and 300 bopd for the comparable period in 2008.  In the third quarter 2009, net oil production was 323 bopd compared to 287 bopd in the same period 2008. 

The 2008 drilling program in Tierra del Fuego was successful in adding reserves, future production potential and significant value.  Given the successful results of this drilling program, the Company has focused on well completion and infrastructure improvements in 2009 to increase production through its connection to the San Martin pipeline linking Tierra del Fuego with the mainland.  In August 2009 the government owned gas transportation company commenced work on a project to build a second gas pipeline across the Straits of Magellan for the purpose of doubling gas deliveries from Tierra del Fuego.  This project is expected to be completed in the third quarter of 2010.  In anticipation of increased access to mainland markets and upward pressure on commodity prices, Antrim has identified eight (2.1 net) wells targeting gas bearing reservoirs on the concession which are being considered for drilling in 2010.  

Argentina - Medianera and Tres Nidos Sur, Neuquen Basin 

The Medianera licence was determined uneconomic at current oil prices and in February 2009, Antrim shut-in all production from the field.  Under the terms of the Tres Nidos Sur licence, Antrim must acquire a minimum of 50 km2 of 3D seismic and drill an exploration well by end 2009.  Antrim is considering its alternatives including the potential of deferring this commitment into 2010.  Antrim has a 70% working interest in the Tres Nidos Sur Licence.    

Argentina - North West Basin 

Net production to Antrim from the Puesto Guardian Licence in the first nine months of 2009 averaged 229 bopd compared to 261 bopd for the same period in 2008.  In the third quarter of 2009, production averaged 218 bopd, compared to 246 bopd in the same period in 2008.  The reduction in production volumes for the third quarter 2009 was due to three wells requiring pump and downhole equipment repairs.  Antrim has a 40% working interest in the Puesto Guardian Licence. 

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, 2008 and dated March 30, 2009 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 Vice President, Operations 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 September 30, 2009 and December 31, 2008 (unaudited)

----------------------------------------------------------------------------

                                                        2009           2008
                                                           $              $
                                                 ---------------------------

Assets

Current assets
Cash and cash equivalents                         31,283,888     35,337,007
Accounts receivable                                4,622,449      5,186,806
Inventory and prepaid expenses                     1,087,324        945,363
                                                 ---------------------------
                                                  36,993,661     41,469,176

Petroleum and natural gas properties             247,907,983    226,968,744
Office equipment                                     496,536        556,826
Future income taxes                                  504,976        348,006
Investments and other non-current assets           1,890,442      2,018,697
                                                 ---------------------------
                                                 287,793,598    271,361,449
                                                 ---------------------------
                                                 ---------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities           3,269,142      6,201,849
                                                 ---------------------------
                                                   3,269,142      6,201,849

Asset retirement obligations                      11,504,944      9,913,898
                                                 ---------------------------
                                                  14,774,086     16,115,747
                                                 ---------------------------

Commitments and contingencies

Shareholders' Equity
Capital stock                                    311,913,860    311,927,578
Contributed surplus                               14,866,141     11,664,179
Deficit                                          (43,516,202)   (37,027,268)
Accumulated other comprehensive income (loss)    (10,244,287)   (31,318,787)
                                                 ---------------------------
                                                 273,019,512    255,245,702
                                                 ---------------------------
                                                 287,793,598    271,361,449
                                                 ---------------------------
                                                 ---------------------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the Periods Ended September 30, 2009 and 2008 (unaudited)

----------------------------------------------------------------------------

                               Three Months Ended         Nine Months Ended
                                     September 30              September 30
                                2009         2008         2009         2008
                                   $            $            $            $
                          --------------------------------------------------

Revenue
Oil and gas                4,236,161    3,337,690    9,581,360    9,383,020
Royalties                   (595,886)    (384,341)  (1,236,982)  (1,161,720)
Export tax                   (50,327)     (77,778)     (72,497)    (261,414)
                         ---------------------------------------------------
                           3,589,948    2,875,571    8,271,881    7,959,886
Interest and other
 income                      613,477      815,267    1,442,887    2,727,775
                         ---------------------------------------------------
                           4,203,425    3,690,838    9,714,768   10,687,661
                         ---------------------------------------------------

Expenses
Operating                  1,823,486    1,132,492    4,956,551    3,504,459
General and
 administrative            1,306,950    1,573,076    4,069,057    5,832,356
Stock-based compensation     676,412    1,491,928    2,468,364    3,853,401
Depletion and
 depreciation              1,737,660    1,155,576    4,410,534    3,577,703
Accretion of asset
 retirement obligations      156,702      268,581      435,130      797,526
Foreign exchange (gain)
 loss                        255,257      (67,816)     (29,246)    (193,191)
                         ---------------------------------------------------
                           5,956,467    5,553,837   16,310,390   17,372,254
                         ---------------------------------------------------

Loss for the period
 before income taxes      (1,753,042)  (1,862,999)  (6,595,622)  (6,684,593)

Income tax expense
 (recovery)
Current                        4,503        3,158       81,532       39,795
Future                        (6,112)    (358,768)    (188,220)    (845,298)
                         ---------------------------------------------------
                              (1,609)    (355,610)    (106,688)    (805,503)
                         ---------------------------------------------------
Net Loss for the period   (1,751,433)  (1,507,389)  (6,488,934)  (5,879,090)
Deficit - Beginning of
 period                  (41,764,769) (28,367,927) (37,027,268) (23,996,226)
                         ---------------------------------------------------
Deficit - End of period  (43,516,202) (29,875,316) (43,516,202) (29,875,316)
                         ---------------------------------------------------
                         ---------------------------------------------------

Net loss per common
 share
 Basic                         (0.01)       (0.01)       (0.05)       (0.05)
 Diluted                       (0.01)       (0.01)       (0.05)       (0.05)


Antrim Energy Inc.
Consolidated Statements of Comprehensive Income (Loss) and Accumulated Other
Comprehensive Income (Loss)
For the Periods Ended September 30, 2009 and 2008 (unaudited)

----------------------------------------------------------------------------

                               Three Months Ended         Nine Months Ended
                                     September 30              September 30
                                 2009        2008         2009         2008
                                    $           $            $            $
                         ---------------------------------------------------

Net loss for the period    (1,751,433) (1,507,389)  (6,488,934)  (5,879,090)

Comprehensive income
 (loss)
Unrealized (loss) gain on
 translation of
 consolidated financial
 statements                14,363,044  (7,012,363)  24,013,129  (14,951,246)
                         ---------------------------------------------------
Comprehensive income
 (loss)                    12,611,611  (8,519,752)  17,524,195  (20,830,336)
                         ---------------------------------------------------
                         ---------------------------------------------------

Accumulated other
 comprehensive income
 (loss)                   (24,607,331) 21,955,252  (31,318,787)  29,894,135
 - Beginning of period

Change in accounting
 policy                             -           -   (2,938,629)           -

Other comprehensive
 (loss) income             14,363,044  (7,012,363)  24,013,129  (14,951,246)
                         ---------------------------------------------------
Accumulated other
 comprehensive income
 (loss)                   (10,244,287) 14,942,889  (10,244,287)  14,942,889
 - End of period
                         ---------------------------------------------------
                         ---------------------------------------------------


Antrim Energy Inc.
Consolidated Statements of Cash Flows
For the Periods Ended September 30, 2009 and 2008 (unaudited)

----------------------------------------------------------------------------

                                 Three Month Ended        Nine Months Ended
                                      September 30             September 30
                                 2009         2008        2009         2008
                                    $            $           $            $
                          --------------------------------------------------
Cash Provided by (used in)

Operating Activities

Net loss for the period    (1,751,433)  (1,507,389) (6,488,934)  (5,879,090)
Items not involving cash:
 Depletion and
  depreciation              1,737,660    1,155,576   4,410,534    3,577,703
 Accretion of asset
  retirement obligations      156,702      268,581     435,130      797,526
 Stock-based compensation
  expense                     676,412    1,491,928   2,468,364    3,853,401
 Foreign exchange (gain)
  loss                        (69,507)    (164,259)   (325,831)    (165,389)
 Future income taxes           (6,112)    (358,768)   (188,220)    (845,298)
                          --------------------------------------------------
                              743,722      885,669     311,043    1,338,853
Change in non-cash
 working capital items       (762,341)  (1,012,836) (1,489,758)    (312,311)
                          --------------------------------------------------
                              (18,619)    (127,167) (1,178,715)   1,026,542
                          --------------------------------------------------

Financing Activities
Issue of common shares              -   51,164,183      (6,859)  51,552,104
Share issue expense                 -   (2,564,108)          -   (2,590,403)
                          --------------------------------------------------
                                    -   48,600,075      (6,859)  48,961,701
                          --------------------------------------------------
Investing Activities
Office equipment              (34,075)     (50,099)   (108,525)    (446,284)
Petroleum and natural gas
 properties                (1,051,706) (32,939,111) (5,330,470) (85,191,340)
Restricted cash                     -   25,620,042           -    4,499,461
Other non-current assets     (127,190)    (218,633)   (110,384)    (865,937)
Change in non-cash
 working capital items         36,559  (18,645,913) (1,029,048) (14,134,154)
                          --------------------------------------------------
                           (1,176,412) (26,233,714) (6,578,427) (96,138,254)
                          --------------------------------------------------
Effect of exchange rate
 changes on cash and
 short term deposits         (111,422)    (568,534)     (1,225)    (292,289)
Net effect of foreign
 exchange translation on
 cash flow                  1,952,741     (714,110)  3,712,107   (3,399,803)
                          --------------------------------------------------
Net (decrease) increase
 in cash and cash
 equivalents                  646,288   20,956,550  (4,053,119) (49,842,103)
Cash and cash equivalents
 - Beginning of period     30,637,600   27,995,424  35,337,007   98,794,077
                          --------------------------------------------------

Cash and cash equivalents
 - End of period           31,283,888   48,951,974  31,283,888   48,951,974
                          --------------------------------------------------
                          --------------------------------------------------

/T/


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. Douglas B. Olson Chief Financial Officer (403) 264-5111 (403) 264-5113 (FAX) olson@antrimenergy.com or Antrim Energy Inc. Scott Berry Manager, Investor Relations (403) 264-5111 (403) 264-5113 (FAX) berry@antrimenergy.com www.antrimenergy.com