Antrim Energy Inc.
TSX : AEN
AIM : AEY

Antrim Energy Inc.

November 14, 2005 20:16 ET

Antrim Energy Inc. Announces 2005 Third Quarter Financial and Operational Results

CALGARY, ALBERTA AND LONDON, UNITED KINGDOM--(CCNMatthews - Nov. 14, 2005) -

Antrim Energy Inc. (TSX:AEN) (AIM:AEY) ("Antrim") today reported its financial and operational results for the nine month period ended September 30, 2005.

Highlights for the first nine months include:

- 60% increase in revenues over the comparable period in 2004

- 97% increase in production over the comparable period in 2004

- Acquisitions and strategic farm-outs in the UK North Sea

- Commencement of 2005 UK North Sea and Argentina drilling programs

- Completed $26 million financing

Antrim is pleased to report significant increases in revenue and production over the prior year and the commencement of its 2005 drilling program in the UK North Sea and Argentina.

In the UK North Sea, the Company has been carried through the cost of drilling the first well in its 2005 drilling program and expects to be carried for all or most of the cost of drilling currently underway on the second well in the program. Funds for drilling the Company's third well in the North Sea later this year and a planned fourth well in 2006 are in hand, following the completion in September 2005 of a $26 million equity financing.

Drilling in Argentina on the Tierra del Fuego concessions acquired in February 2005 has also commenced. This drilling program, undertaken in conjunction with the Company's partners in the concessions, is anticipated to provide the Company with consistent growth over the coming year.



Financial and Operating Results

Three months ended Nine months ended
September 30, September 30,
------------------------------------------------
Financial Results
($000's except
per share amounts) 2005 2004 2005 2004
--------------------- -------- -------- -------- --------
Revenue 2,989 1,743 8,023 5,019
Cash flow from
operations 891 170 1,679 824
Cash flow from
operations per share 0.02 0.00 0.04 0.03
Net income (loss) 188 (1,045) (759) (1,273)
Net income (loss)
per share 0.00 (0.03) (0.02) (0.04)
Working capital 37,266 23,536 37,266 23,536
Capital expenditures 840 1,365 9,750 2,541
Debt - - - -

Common Shares
Outstanding (000's)
---------------------
End of period 54,834 38,573 54,834 38,573
Weighted average
- basic 41,191 33,771 40,105 32,178
Weighted average
- fully diluted 43,563 41,365 42,478 39,772

Operating Results
---------------------
Wellhead price
($/BOE) 32.25 38.18 31.36 38.49
Royalties ($/BOE) (4.08) (5.04) (4.04) (5.32)
Operating expenses
($/BOE) (7.82) (5.82) (8.46) (7.43)
Netback ($/BOE) 20.35 27.32 18.86 25.73

Production
---------------------
Oil, natural gas and
NGL production (BOE) 92,662 45,659 255,857 130,405
Oil , natural gas and
NGL production
(BOE per day)(1) 1,007 496 937 476

(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.


At September 30, 2005, Antrim had working capital of $37,265,512 (December 31, 2004 - $20,324,848) including cash of $34,349,672 (December 31, 2004 - $21,477,705) and no debt. Antrim generated cash flow from operations in the nine month period ended September 30, 2005 of $1,678,669 ($0.04 per share) compared to cash flow from operations of $824,278 ($0.03 per share) in the comparable period in 2004. Net loss in the first nine months of 2005 was $758,707 ($0.02 per share) compared to a net loss of $1,273,202 ($0.04 per share) in 2004. Net loss decreased due to higher revenues on increased oil and gas production and related prices.

Argentina Activities

Argentina- NorthWest Basin

Net oil production from the Puesto Guardian field in Argentina's NorthWest Basin in the first nine months of 2005 was 433 barrels of oil per day compared to 453 barrels of oil per day in the first nine months of 2004.

In conjunction with its partners in the Puesto Guardian field and neighbouring Capricorn licence, Antrim plans to acquire additional seismic which would lead to the drilling of new wells to add further production and reserves from the region.

Argentina - Tierra del Fuego

On February 14, 2005, Antrim completed the acquisition of a 25.78% working interest in three producing exploitation concessions and related processing facilities in the Tierra del Fuego region in southern Argentina. The concessions produce light crude oil, natural gas and natural gas liquids ("NGLs") and Antrim believes that the concessions have significant exploration and development potential. The cost of the acquisition was approximately $7.05 million (US$5.7 million) after closing adjustments, and was funded from existing working capital.

The concessions are located in a special economic zone to attract and secure economic activity. Fiscal terms include a 12% flat royalty and no corporate, export or value-added taxes apply. Oil and NGLs are sold at world market prices to domestic refineries or for export. Gas is sold to residential and industrial domestic buyers at low regulated prices. As expected, the price of gas sold to industrial buyers has increased during the year. This increase, combined with a change in sales mix towards industrial buyers, is expected to result in an increase in the average gas price received from the concessions to approximately US$1.00 Mcf by the end of the year. Net oil production to Antrim from the Tierra del Fuego concessions from February 14, 2005 to September 30, 2005 was 128 barrels of oil per day. Gas and NGL production was 2.4 million cubic feet per day and 48 barrels per day, respectively.

Immediately upon acquisition of the concessions, Antrim and its partners commenced a comprehensive 3D seismic survey covering over 300 km2. In October 2005, based on the results of this survey, Antrim began drilling the first well of a planned 2005 four well drilling program. Additional drilling on the concessions is planned for 2006.

United Kingdom Activities

United Kingdom - Southern Gas Basin

In September 2005, drilling commenced on Antrim's UK North Sea Prometheus Prospect on Block 42/21 in the Southern Gas Basin. In October 2005, Antrim announced that hydrocarbons were not present in commercial quantities and that the well would be plugged and abandoned. The Prometheus well was drilled to target depth at no cost to Antrim. Antrim's interest in Blocks 42/21 and 42/22 is 17.5%.

United Kingdom - Block 211/22a and Block 211/23d

Drilling operations on the Company's second well, "Clachnaben", in the northern sector of the UK North Sea commenced in October 2005. The Clachnaben well is targeting the oil prone Jurassic Brent Sandstone in Block 211/22a adjacent to the Cormorant oil field and related export infrastructure. Dana Petroleum plc, the licence operator, has contracted the Bredford Dolphin semi-submersible drilling rig to drill the well. If drilling is successful, it is envisaged that a fast-track subsea tie-back development would be pursued jointly with the adjacent 211/22a-1 discovery which was drilled in 1977 and flowed 1,280 bpd of 31 degree API oil. At that time, the 211/22a-1 well was plugged and abandoned as being uneconomic.

Antrim has entered into a contractual arrangement to farm-out 100% of the cost of the well up to a gross cost of Pounds Sterling 5.75 million. Gross drilling costs are expected to be approximately Pounds Sterling 6.40 million. Antrim would only bear 21% of the cost above Pounds Sterling 5.75 million. Antrim's interest at the conclusion of the drilling operation will be 21%.

Under the agreement and following Dana's earning well, Antrim will increase its working interest from 75.79% to 79% in the southeast portion of the Block (to be renamed Block 211/22c), which includes the prospective Osprey Ridge area. A discovery well (211/22a-3) drilled in 1984 on this portion of the block tested oil at 5,512 barrels of oil per day from a Jurassic reservoir. On September 6, 2005, Antrim was advised that it is to be awarded Block 211/23d, adjacent to and immediately east of Block 211/22c as part of the United Kingdom 23rd Seaward Licensing Bid Round. A discovery well (211/23b -11) was drilled in 1992 on this Block and tested oil at a rate of 8,100 bopd from the Jurassic Brent Interval.

Antrim intends to drill an exploration well (the "Causeway Prospect") on the trend which it believes extends from Block 211/22c to Block 211/23d in the first half of 2006, subject to rig availability and the receipt of all necessary approvals.

United Kingdom - Block 21/15a

Antrim's third drilling operation in the UK North Sea, the "Bennachie" prospect, is expected to commence in late November or early December 2005. The Bennachie well, operated by Nexen Petroleum U.K. Limited, will target the Jurassic Fulmar Sandstone approximately 1.5 kms from the original Bennachie discovery well 21/15a-2 which tested high quality 39 degree API oil at a stabilized rate of 4,364 barrels per day and 2.67 MMcf/d of associated gas. Antrim will earn a 25% interest in the licence, including the original Bennachie discovery well. Gross drilling costs are expected to be approximately Pounds Sterling 7.7 million (Cdn. $16.7 million) of which Antrim's share is expected to be approximately Pounds Sterling 2.5 million (Cdn. $5.5 million).

Certain statements contained in this press release may be considered as "forward looking". Such "forward looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. Updated information about Antrim can be accessed on its website: www.antrimenergy.com

Copies of Antrim's 2005 third 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.



Antrim Energy Inc.
Consolidated Balance Sheets
As at September 30, 2005 and December 31, 2004 (unaudited)
-----------------------------------------------------------------------

2005 2004
$ $
------------ ------------
Assets
Current assets
Cash and cash equivalents 34,349,672 21,477,705
Accounts receivable 2,559,062 3,489,087
Inventory and other (note 3) 2,099,365 199,445
------------ ------------
39,008,099 25,166,237

Petroleum and natural gas properties (note 2) 17,874,562 9,791,904
Office equipment - net of accumulated
amortization of $578,949
(2004 - $503,949) 107,196 165,767
Other assets (note 3) 352,840 -
------------ ------------

Total Assets 57,342,697 35,123,908
------------ ------------
------------ ------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,598,791 4,163,522
Income taxes payable 143,796 677,867
------------ ------------
1,742,587 4,841,389

Future income taxes 31,403 33,838

Asset retirement obligation 618,858 284,882
------------ ------------
2,392,848 5,160,109

Shareholders' Equity

Share capital (note 4) 70,363,051 45,553,339
Contributed surplus 1,690,556 755,511
Deficit (17,103,758) (16,345,051)
------------ ------------

54,949,849 29,963,799
------------ ------------

Total Liabilities and Shareholders' Equity 57,342,697 35,123,908
------------ ------------
------------ ------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the periods ended September 30, 2005 and 2004 (unaudited)
------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
$ $ $ $
------------------------ ---------------------------
Revenue
Oil and gas sales 2,988,760 1,743,451 8,022,578 5,018,653
Royalties (378,340) (230,022) (1,033,582) (694,330)
----------- ------------ ------------- -------------
2,610,420 1,513,429 6,988,996 4,324,323

Interest and other
income 89,932 81,741 262,418 201,741
----------- ------------ ------------- -------------

2,700,352 1,595,170 7,251,414 4,526,064
----------- ------------ ------------- -------------
Expenses
Operating 724,227 265,808 2,163,533 969,184
General and
administrative 619,319 743,512 2,223,441 1,715,428
Stock based
compensation 141,178 105,399 380,208 266,317
Depletion and
depreciation 498,884 401,889 1,384,490 1,106,732
Accretion of asset
retirement obligations 15,300 9,500 45,722 26,300
Foreign exchange loss
(gain) 294,973 110,553 402,915 95,264
Write-off of impaired
assets 50,729 698,131 629,391 698,131
----------- ------------ ------------- -------------

2,344,610 2,334,792 7,229,700 4,877,356
----------- ------------ ------------- -------------

Income (loss) for the
year before income
taxes 355,742 (739,622) 21,714 (351,292)

Income taxes (recovery)
Current 170,369 304,943 782,856 921,910
Future (2,435) - (2,435) -
----------- ------------ ------------- -------------

167,934 304,943 780,421 921,910
----------- ------------ ------------- -------------

Net Income (Loss) for
the Period 187,808 (1,044,565) (758,707) (1,273,202)

Deficit
- Beginning of
Period (17,291,566) (10,987,549) (16,345,051) (10,758,912)
----------- ------------ ------------- -------------
Deficit
- End of Period (17,103,758) (12,032,114) (17,103,758) (12,032,114)
----------- ------------ ------------- -------------

Net Income (Loss)
Per Common Share
- Basic 0.00 (0.03) (0.02) (0.04)
Net Income (Loss)
Per Common Share
- Diluted 0.00 (0.03) (0.02) (0.04)


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