News

Mar 26, 2010 - 15:58 ET Antrim Energy Inc. Reports 2009 Results and Reserves

CALGARY, ALBERTA--(Marketwire - March 26, 2010) -

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

Antrim Energy Inc. ("Antrim") (TSX:AEN) (AIM:AEY), an international oil and gas exploration and production company, today released its 2009 year-end financial and operating results. The results include a summary and evaluation of reserves that have been independently assessed by McDaniel & Associates Consultants Ltd. in accordance with the standards specified by National Instrument 51-101.

All financial figures are audited and in US dollars except for quarterly figures which are unaudited
2009 Highlights:

  • Argentina production increased by 30% to 1,840 boepd
  • United Kingdom proved plus probable oil reserves increased 5.7% to 27.7 million boe
  • Argentina proved plus probable oil and gas reserves decreased 4.4% to 9.4 million boe
  • Financial flexibility with strong cash position of $31 million and no debt

Antrim completed 2009 with a healthy cash position of $31 million, no debt and increased proved plus probable reserves of 37.2 million barrels of oil equivalent ("boe"), approximately 3% higher than in 2008. Production in Argentina increased to 1,840 barrels of oil equivalent per day ("boepd") from 1,411 boepd in 2008, an increase of 30%.

In the United Kingdom, total proved plus probable reserves increased 5.7% from 26.2 million boe in 2008 to 27.7 million boe (net to Antrim) as at December 31, 2009. Fyne and Dandy total proved plus probable reserves increased to 17.5 million boe as at December 31, 2009 compared to 16.0 million boe in 2008 due to seismic re-interpretation. The Fyne and Dandy fields now collectively represent 47.1% of the Company's total proved plus probable reserves as at December 31, 2009. Causeway total proved plus probable reserves remained unchanged at 10.2 million boe (net to Antrim).

On March 4, 2010, Antrim announced the signing of a Conditional Letter Agreement with Valiant Petroleum plc ("Valiant") to sell a 30% interest in Causeway. Antrim will receive up to a $21.75 million carried contribution towards the development costs of bringing the field to production start-up. The UK reserves previously described do not reflect the impact of this sale.

In Argentina, the total proved plus probable reserves decreased by 4.4% to 9.4 million boe as at December 31, 2009 compared to 9.9 million boe in 2008 (net to Antrim). This reduction was primarily due to 2009 production. 

An eight well drilling program in Tierra del Fuego, designed to increase gas and NGL production from the Los Flamencos gas field, commenced in late February 2010. The first well has been drilled and cased as a potential gas well with 50 feet of gross pay.

Reserves Summary

The following table summarizes Antrim's reserves as at December 31, 2009:

Antrim's Interest in Reserves as at December 31, 2009
(based on forecast price and cost assumptions)
  Oil Gas NGL Total
Category mbbls mmcf mbbls mboe
Proved 832 21,025 163 4,500
Proved plus probable 29,313 44,734 394 37,163
Proved plus probable plus possible 57,489 55,709 471 67,245
       
Present Value Cash Flow Before Income Tax as at December 31, 2009 ($ 000's)
(based on forecast price and cost assumptions)
  PV PV PV
Category 0% 5% 10%
Proved 50,684 42,576 36,293
Proved plus probable 1,267,137 877,833 618,307
Proved plus probable plus possible 3,369,440 2,254,674 1,563,638
       

Antrim's reserve information and reports pursuant to National Instrument 51-101 are available in Antrim's Annual Information Form filed on SEDAR at www.sedar.com.

Financial and Operating Results

  Three Months Ended December 31,   Year Ended December 31,  
  2009   2008   2009   2008  
Financial Results ($000's except per share amounts)                
Revenue 3,371   2,651   12,953   12,034  
Cash flow (used in) from operations (1,378 ) (1,032 ) (1,067 ) 307  
Cash flow (used in) from operations per share (0.01 ) (0.01 ) (0.01 ) 0.00  
Net income (loss) (6,071 ) (7,152 ) (12,560 ) (13,031 )
Net income (loss) per share - basic (0.04 ) (0.05 ) (0.09 ) (0.10 )
Total assets 285,119   271,361   285,119   271,361  
Working capital 31,960   35,267   31,960   35,267  
Expenditures on petroleum and natural gas properties (548 ) 5,970   4,782   91,161  
Debt -   -   -   -  
                 
Common Shares Outstanding (000's)                
End of period 135,349   135,322   135,349   135,322  
Weighted average - basic 135,291   135,054   135,284   125,775  
Weighted average - diluted 136,041   135,054   136,034   125,775  
                 
Production                
Oil , natural gas and NGL production (boe per day)(1) 1,990   1,391   1,840   1,411  
                 

(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.

Oil and gas revenue increased to $13.0 million for the year ended December 31, 2009 compared to $12.0 million for the same period in 2008. Revenue increased as a result of higher gas production and gas prices received offset by lower oil production and oil prices received. Antrim incurred a cash flow from operations deficiency of $1.1 million in 2009 compared to cash flow of $0.3 million in 2008. Cash flow decreased primarily due to higher operating costs, lower interest and other income offset by higher revenue and lower general and administrative costs. 

Net production to Antrim in 2009 was 1,840 boepd compared to 1,411 boepd for 2008. For the three month periods ended December 31, 2009 and 2008, net production was 1,990 and 1,391 boepd respectively. All of Antrim's production is based in Argentina.

Expenditures on petroleum and natural gas properties in 2009 were $4.8 million compared to $91.2 million in 2008. Capital expenditures were significantly reduced in 2009, as compared to 2008, as the drilling programs in the UK and Argentina concluded in 2008. An eight well drilling program in Tierra del Fuego, commenced in late February 2010.

2010 Outlook

Antrim's strong financial position which includes unrestricted cash available of $31.2 million and no debt provides Antrim with financial and operational flexibility. 

Antrim is currently in discussion with floating production storage and offloading providers as well as local existing infrastructure owners to select the most efficient production export route for the Fyne Field. Antrim intends to select the optimum development scheme and produce a Field Development Plan for submission in late 2010. The Company's strategy in this core area is to accelerate its development by working closely with industry partners. Antrim is maturing drilling prospects on its surrounding licences in the Greater Fyne Area with a view to drilling in 2011.

Antrim expects to be active in the recently announced 26th UK offshore licensing round, building on the past success of acquiring strategic and potentially high impact properties in Greater Fyne. 

With the expectation that Causeway will be funded to production and with the intention to acquire a development partner for Fyne, Antrim's other North Sea activity will be weighted towards adding value by exploring for new hydrocarbons and appraising existing discoveries.

In South America, the Company will also concentrate on the high value production assets in Tierra del Fuego with a view to increasing production in a rising price commodity market. The Antrim team intends to expand the Argentine operation primarily through new in-country exploration opportunities using the cash flow from existing Argentine operations. Antrim is also considering further development of its South American business and is in discussion on several growth opportunities.

Antrim views the bilateral strategy as central to its corporate development, balancing longer term and capital-intensive investments in the UK North Sea with shorter investment cycle on-shore exploration and production opportunities.

Antrim's daily production in Argentina is expected to average approximately 1,800 net boepd in 2010.

About Antrim:
Antrim Energy Inc. is an international oil and gas exploration and production company headquartered in Calgary, Alberta, Canada. Antrim's production and exploration operations are centered in Argentina and the United Kingdom. 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 and forward-looking information which are based on Antrim's internal reasonable expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information. Cumulative volumes are not necessarily representative of future production volumes. Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting", "forecast", "achieve" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements and information. 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 believes that the expectations reflected in those forward-looking statements and information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements and information included in this news release and any documents incorporated by reference herein should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this news release or the particular document incorporated by reference herein and Antrim does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws.
In particular, this AIF and any documents incorporated by reference herein, contain specific forward-looking statements and information pertaining to the schedules and timing of certain projects, Antrim's strategy for growth, With respect to forward-looking statements contained in this news release and any documents incorporated by reference herein, Antrim has made assumptions regarding Antrim's ability to finalize the sale of a portion of Causeway to Valiant, the ability of Antrim's partners to meet their commitments as they relate to the Company and more specifically the ability of Valiant to honor its commitments as identified in the Conditional Letter Agreement. In respect to these assumptions, the reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release.

The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 mcf:1bbl is based on an energy equivalency method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Qualified Person Review
In accordance with AIM guidelines, Mr. Kerry Fulton, P. Eng and Vice President, Operations for 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.
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
or
Nominated Adviser on AIM:
Royal Bank of Canada Europe Limited
Martin Eales
+ 44 20 7029 7881