Antrim Energy Inc.
TSX : AEN
AIM : AEY

Antrim Energy Inc.

August 12, 2009 03:00 ET

Antrim Energy Inc. Announces 2009 Second Quarter Financial and Operational Results

CALGARY, ALBERTA--(Marketwire - Aug. 12, 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 six month periods ended June 30, 2009.

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

HIGHLIGHTS:

- Increased average production in Argentina to 1,764 boepd in Q2, current production is 2,000 boepd

- Increased licence holdings in the Fyne Area, UK North Sea

- Average gas price in Argentina increased 68% to $1.56 per mcf from $0.93 in Q2 2008

- Financial flexibility with strong cash position of US $30.6 million and no debt

In the first half of 2009, average production in Argentina increased to 1,677 barrels of oil equivalent per day ("boepd") compared to 1,448 boepd in the first half of 2008. Oil and gas revenue decreased to $5.3 million for the six months ended June 30, 2009 compared to $6.0 million for the same period in 2008. Revenues decreased as a result of lower oil production and lower oil prices partially offset by higher gas production and higher gas prices. Antrim incurred a cash flow from operations deficiency of $0.4 million for the six months ended June 30, 2009 compared to positive cash flow of $0.5 million for the same six month period in 2008. In addition to the reduction in revenue second quarter 2009 cash flow was also impacted by higher operating expenses. Current production in Argentina is 2,000 boepd.

United Kingdom

Work continues on Antrim's two major North Sea properties, Fyne (Antrim operated, 75% working interest) and Causeway (Antrim operated, 65.5% working interest). A Field Development Plan ("FDP") for the approximately 20 million barrel (gross) Fyne Field is being prepared. The FDP envisages oil production from three producing wells two of which were drilled in 2008. Production systems and an export route are currently under evaluation including production through existing infrastructure located between 7 and 21km from the Fyne Field and the deployment of an independent floating production storage and offloading system ("FPSO"). As previously announced, Antrim was awarded an additional block, 21/24b, as part of the UK 25th Seaward Licensing Round. The Fyne Field forms the core of a group of Antrim owned and operated licences, the Greater Fyne Area, in the Central North Sea including several licences awarded in the UK 25th Seaward Licensing Round (blocks 21/24b, 21/24c, 21/28b and 21/29c). Antrim is currently in the process of seeking a partner to assist in funding the Fyne development.

Significant progress has been made on Antrim's Causeway FDP (submitted to the UK Department of Energy and Climate Change ("DECC") in December 2008) with the objective of tying into existing subsea facilities adjacent to the Dunlin platform. This would provide for significant cost savings compared with those in the previously submitted FDP. Further geological and geophysical work has been completed including reprocessing and interpretation of Causeway 3D seismic data and the changes will be included in the updated FDP. On April 22, 2009, the United Kingdom government announced a package of reforms to its North Sea fiscal regime as part of the 2009 budget. The Causeway and Fyne projects will receive economic benefits from these measures.

Argentina

The pipeline linking the Company's gas producing fields in Tierra del Fuego with the San Martin gas sales line, across the Straits of Magellan, has allowed Antrim to deliver increasing volumes of gas to the Argentine mainland at higher prices. The system is currently delivering 24.3 (net 6.3) million cubic feet per day ("mmcf/d") to mainland markets compared to 20.0 (net 5.2) mmcf/d at the end of the first quarter. Antrim's focus in the second quarter 2009 has been on increasing production from its Tierra del Fuego property through well tie-ins with this work ongoing during the third quarter 2009. Antrim anticipates production in 2009 to average approximately 1,850 boepd. The lower production forecast is due to reduced demand for natural gas by mainland industrial users and delays in well tie-ins because of inclement weather conditions.



Financial and Operating Results (unaudited)

Three Months Ended Six Months Ended
June 30 June 30
2009 2008 2009 2008
----------------------------------------------------------------------------
Financial Results ($000's except per
share amounts)
-------------------------------------
Revenue 2,120 2,321 5,345 6,045
Cash flow from operations
(deficiency)(1) (716) (986) (433) 453
Cash flow from operations per share(1) (0.01) (0.01) 0.00 0.00
Net (loss) (2,888) (3,564) (4,738) (4,372)
Net (loss) per share - basic (0.03) (0.03) (0.04) (0.04)
Total assets 274,360 306,040 274,360 306,040
Working capital 32,318 34,063 32,318 34,063
Expenditures on petroleum and natural
gas properties 1,811 35,605 4,279 52,252

Debt - - - -

Common shares Outstanding (000's)
----------------------------------
End of period 135,281 117,815 135,281 117,815
Weighted average - basic 135,281 117,708 135,281 117,645
Weighted average - diluted 135,281 120,344 135,281 120,281

Production
-----------
Oil, natural gas and NGL production
(boe per day) (2) 1,764 1,394 1,677 1,448

(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.


OVERVIEW OF OPERATIONS

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

The area surrounding the Fyne field has rapidly developed into Antrim's core operational area in the UK and an FDP for the 20 million barrel (gross) Fyne Field is being prepared. The FDP envisages oil production from three producing wells, two of which were drilled in 2008. Production systems and an export route are currently under evaluation including production through existing infrastructure located between 7 and 21km from the Fyne Field and the deployment of an independent FPSO. The Fyne Field forms the core of a 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).

The 21/28a-2 discovery well tested at a stable 3,600 bopd with no water. In August 2008, the 21/28a-10z well tested on natural flow at rates up to 4,000 bopd with no water.

25th Seaward Licensing Round

As previously announced, Antrim was awarded an additional block, 21/24b as part of the UK's 25th Seaward Licensing Round.

Block 21/24b is approximately 10 kilometers northeast of the Fyne Field, and immediately adjacent to the Teal and South Teal Fields to the east, the Clapham and Guillemot Northwest Fields to the south and the Pict Field to the west. These fields all produce from either the Eocene Tay or the Upper Jurassic Fulmar sandstone and block 21/24b is anticipated to have potential in both of these formations. A significant oil column in the Fulmar Formation was discovered in this block by a previous operator. This discovery well 21/24-4 was drilled in 1991, but not tested.

Block 21/24b adds approximately 36,000 acres to Antrim's asset portfolio in the area. The licence is a Traditional Licence, with seismic processing to be completed and a contingent well to be drilled during the initial four year term.

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

Antrim signed a Heads of Terms agreement in 2008 for the provision of platform hosting services on the Dunlin Alpha platform. Work continues with the Dunlin platform operator to incorporate significant cost and time savings into the subsea completion and tie-in. Since the submission of a FDP to DECC in late 2008, Antrim has modified the original plan to tie into existing subsea facilities adjacent to the Dunlin platform. This would provide significant cost savings compared with those in the previously submitted FDP. Antrim plans to include these changes into an updated FDP, which is expected to be submitted to DECC in late 2009. Geological and geophysical work and interpretation of Causeway 3D seismic data has been completed and will also be incorporated into the FDP.

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. An initial production rate of 15,000 bopd is expected (net 9,800 bopd) with a first year average rate of 7,000 bopd (net 4,600 bopd). 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 six months ended June 30, 2009 increased 28.1% to 1,436 boepd compared to 1,121 boepd for the same period in 2008. Gas and natural gas liquids ("NGL") production in the second quarter 2009 was 6.6 mmcf/d and 42 barrels per day, respectively, compared to 4.5 mmcf/d and 71 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 24.3 (net 6.3) million cubic feet per day (mmcf/d) to mainland markets. The current delivery rate decreased from a previous expected rate of 32 mmcf/d (net 8.2 mmcf/d) as industrial demand was weaker than forecasted.

Net oil production in the first half of 2009 was 292 bopd and 307 bopd for the comparable period in 2008.

The drilling program in Tierra del Fuego was successful in adding reserves, future production potential and significant value. Current economic conditions dictate a shift in strategy away from drilling, which was discontinued in December 2008, towards increasing production through existing well tie-ins. Subject to favorable commodity prices, Antrim has added new locations to the drilling inventory and drilling is expected to recommence in early 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. Required permitting and environmental studies for the 3D seismic acquisition are underway. Antrim has a 70.0% working interest in the Tres Nidos Sur Licence.

Argentina - North West Basin

Net production to Antrim from the Puesto Guardian Licence in the first half of 2009 averaged 234 bopd compared to 268 bopd for the same period in 2008. In the second quarter 2009, production averaged 230 bopd, compared to 256 bopd in the same period in 2008. The reduction in production volumes was the result of natural production declines. Antrim has a 40% working interest in the Puesto Guardian Licence.

Corporate

On December 31, 2008, Antrim issued 41,011 common shares at Cdn $0.39 for a total value of Cdn $15,994 under the Employee Share Ownership Plan ("ESOP") in excess of the amount of common shares authorized for this purpose by the Toronto Stock Exchange ("TSX"). These shares were subsequently retracted by the Company and the total common shares issued and outstanding was reduced by 41,011.

For the annual and special meeting of shareholders held on May 28, 2009, Antrim submitted to the shareholders for approval, a resolution to increase the number of common shares issuable under the ESOP. However, Antrim inadvertently did not specifically require disinterested approval for the ESOP and did not pre-file its circular disclosure with the TSX, as required. As a result, the ESOP disclosure set out in the circular contained certain attributes that were inconsistent with current TSX policies and the disclosure set out in the circular was deficient in this regard. In addition, the circular contained a representation of TSX conditional approval, which had not been obtained by the Company as required. Consequently, Antrim has suspended any further issuances of common shares under the current ESOP.

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.



Antrim Energy Inc.
Consolidated Balance Sheets
As at June 30, 2009 and December 31, 2008 (unaudited)

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

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

Current assets
Cash and cash equivalents 30,637,599 35,337,007
Accounts receivable 4,415,746 5,186,806
Inventory and prepaid expenses 1,390,776 945,363
----------------------------
36,444,121 41,469,176

Petroleum and natural gas properties 235,106,333 226,968,744
Office equipment 487,137 556,826
Future income taxes 504,371 348,006
Investments and other non-current assets 1,817,861 2,018,697
----------------------------
274,359,823 271,361,449
----------------------------
----------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 4,125,805 6,201,849
----------------------------
4,125,805 6,201,849
----------------------------

Asset retirement obligations 10,719,425 9,913,898
----------------------------
14,845,230 16,115,747
----------------------------

Commitments and contingencies

Shareholders' Equity
Capital stock 311,913,860 311,927,578
Contributed surplus 13,972,833 11,664,179
Deficit (41,764,769) (37,027,268)
Accumulated other comprehensive income (loss) (24,607,331) (31,318,787)
----------------------------
259,514,593 255,245,702
----------------------------
274,359,823 271,361,449
----------------------------
----------------------------


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

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

Three Months Ended Six Months Ended
June 30 June 30
2009 2008 2009 2008
$ $ $ $
--------------------------------------------------------

Revenue
Oil and gas 2,120,116 2,321,382 5,345,199 6,045,331
Royalties (287,891) (338,834) (641,096) (777,379)
Export tax (11,773) (133,904) (22,170) (183,636)
--------------------------------------------------------
1,820,452 1,848,644 4,681,933 5,084,316
Interest and other
income 248,601 725,495 829,410 1,912,508
--------------------------------------------------------
2,069,053 2,574,139 5,511,343 6,996,824
--------------------------------------------------------

Expenses
Operating 1,396,790 1,327,317 3,133,065 2,371,967
General and
administrative 1,381,586 2,260,491 2,762,107 4,259,281
Stock-based
compensation 935,420 1,203,684 1,791,952 2,361,473
Depletion and
deprecation 1,430,938 1,192,014 2,672,874 2,422,127
Accretion of asset
retirement
obligations 147,631 293,034 278,428 528,945
Foreign exchange
(gain) loss (308,510) 379,871 (284,503) (125,375)
--------------------------------------------------------
4,983,855 6,656,411 10,353,923 11,818,418
--------------------------------------------------------

Loss for the
period before
income taxes (2,914,802) (4,082,272) (4,842,580) (4,821,594)

Income tax expense
(recovery)
Current 74,092 36,473 77,029 36,637
Future (101,318) (554,764) (182,108) (486,530)
--------------------------------------------------------
(27,226) (518,291) (105,079) (449,893)
--------------------------------------------------------
Net Loss for the
period (2,887,576) (3,563,981) (4,737,501) (4,371,701)
Deficit - Beginning
of period (38,877,193) (24,803,946) (37,027,268) (23,996,226)
--------------------------------------------------------
Deficit - End of
period (41,764,769) (28,367,927) (41,764,769) (28,367,927)
--------------------------------------------------------
--------------------------------------------------------

Net loss per
common share
Basic (0.03) (0.03) (0.04) (0.04)
Diluted (0.03) (0.03) (0.04) (0.04)


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

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

Three Months Ended Six Months Ended
June 30 June 30
2009 2008 2009 2008
$ $ $ $
----------------------------------------------------
Net loss for the period (2,887,576) (3,563,981) (4,737,501) (4,371,701)

Comprehensive income
(loss)
Unrealized (loss) gain
on translation of
consolidated financial
statements 16,649,626 3,164,279 9,650,085 (7,938,883)
----------------------------------------------------
Comprehensive income
(loss) 13,762,050 (399,702) 4,912,584 (12,310,584)
----------------------------------------------------
----------------------------------------------------

Accumulated other
comprehensive income
(loss) - Beginning of
period (41,256,957) 18,790,973 (31,318,787) 29,894,135

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

Other comprehensive
(loss) income 16,649,626 3,164,279 9,650,085 (7,938,883)
----------------------------------------------------
Accumulated other
comprehensive
income (loss) - End
of period (24,607,331) 21,955,252 (24,607,331) 21,955,252
----------------------------------------------------
----------------------------------------------------


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

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

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

Operating Activities

Net loss for the period (2,887,576) (3,563,981) (4,737,501) (4,371,701)
Items not involving
cash:
Depletion and
depreciation 1,430,938 1,192,014 2,672,874 2,422,127
Accretion of asset
retirement obligations 147,631 293,034 278,428 528,945
Stock-based compensation
expense 935,420 1,203,684 1,791,952 2,361,473
Foreign exchange (gain)
loss (241,218) 444,292 (256,324) (1,130)
Future income taxes (101,318) (554,764) (182,108) (486,530)
----------------------------------------------------
(716,123) (985,721) (432,679) 453,184
Change in non-cash
working capital items (168,105) 833,104 (727,417) 700,525
----------------------------------------------------
(884,228) (152,617) (1,160,096) 1,153,709
----------------------------------------------------

Financing Activities
Issue of common shares (6,859) 350,199 (6,859) 387,921
Share issue expense - (21,197) - (26,295)
----------------------------------------------------
(6,859) 329,002 (6,859) 361,626
----------------------------------------------------
Investing Activities
Office equipment (68,591) (163,075) (74,450) (396,185)
Petroleum and natural
gas properties (1,811,461) (35,605,167) (4,278,764) (52,252,230)
Restricted cash - (5,488,339) - (21,120,581)
Other non-current assets 15,162 (310,823) 16,806 (647,304)
Change in non-cash
working capital items (344,268) (2,049,189) (1,065,607) 4,511,759
----------------------------------------------------
(2,209,158) (43,616,593) (5,402,015) (69,904,541)
----------------------------------------------------
Effect of foreign
exchange translations
on cash flow 2,498,290 251,802 1,869,562 (2,409,447)
----------------------------------------------------
Net (decrease) increase
in cash and cash
equivalents (601,955) (43,188,406) (4,699,408) (70,798,653)
Cash and cash equivalents
- Beginning of period 31,239,554 71,183,830 35,337,007 98,794,077
----------------------------------------------------

Cash and cash equivalents
- End of period 30,637,599 27,995,424 30,637,599 27,995,424
----------------------------------------------------
----------------------------------------------------


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