Antrim Energy Inc.
TSX : AEN
AIM : AEY

Antrim Energy Inc.

August 14, 2006 20:21 ET

Antrim Energy Inc. Announces 2006 Second Quarter Financial and Operational Results

CALGARY, ALBERTA AND LONDON, UNITED KINGDOM--(CCNMatthews - Aug. 14, 2006) -

Antrim Energy Inc. (TSX:AEN) (AIM:AEY) ("Antrim") today reported its financial and operational results for the six month period ended June 30, 2006.

Highlights include:

- Successful multi-well drilling program in Tierra del Fuego, Argentina

- Acquisition of Medianera Block, Neuquen Basin, Argentina

- Completed $28 million financing

- Completed sale of non-core assets

- Announced successful testing results from East Causeway Prospect (third quarter)

Antrim's Two Frontiers strategy was reinforced during the period with the continuation of the Company's drilling success in Argentina and successful drilling of the East Causeway prospect in the UK North Sea.

In Argentina, an already successful drilling program continues to deliver positive results in the form of new oil discoveries and early cash flow. Significant further activity is planned with an extensive 3-D seismic acquisition program over the Company's Puesto Guardian, Capricorn and Medianera properties already underway.

In the United Kingdom, the Company has successfully drilled and tested the East Causeway prospect along the Osprey Ridge Trend in the Northern North Sea. Successful development of this trend, in which Antrim is operator and has maintained a large working interest, has the potential to make a significant impact on the worth of the Company.



Financial and Operating Results


Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
------------------------------------------------------------------------
Financial Results ($000's except per
share amounts)

Revenue 2,767 2,812 5,608 5,034
Cash flow from operations 239 564 1,482 787
Cash flow from operations per share 0.00 0.01 0.03 0.02
Net income (loss) 910 (597) 1,456 (947)
Net income (loss) per share - basic 0.02 (0.01) 0.03 (0.02)
Working capital 35,025 11,978 35,025 11,978
Capital expenditures 20,463 1,169 23,928 8,909
Debt - - - -

Common Shares Outstanding (000's)
End of period 69,995 39,787 69,995 39,787
Weighted average - basic 63,367 39,619 59,168 39,553
Weighted average - fully diluted 65,976 40,612 61,776 40,546

Operating Results
Wellhead price ($/BOE) 36.19 29.78 34.83 30.85
Royalties ($/BOE) (4.87) (3.90) (4.52) (4.02)
Operating expenses ($/BOE) (12.65) (9.52) (9.81) (8.82)
------------------------------------
Netback ($/BOE) 18.67 16.36 20.50 18.00
------------------------------------
------------------------------------

Production
Oil, natural gas and NGL production
(BOE) 75,753 94,422 161,593 163,195
Oil , natural gas and NGL production
(BOE per day)(1) 832 1,038 893 902

(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, gas and NGL (propane and butane) revenue increased to $5,607,508 in the six months ended June 30, 2006 compared to $5,033,818 for the six months ended June 30, 2005. Revenues increased following the acquisition effective February 14, 2005 of a 25.78% working interest in three producing exploitation concessions in Tierra del Fuego, Argentina. Average net oil production in the three and six month periods ended June 30, 2006 was 492 and 502 barrels of oil per day, respectively, compared to 555 and 536 barrels of oil per day, respectively, for the comparable periods in 2005.

Antrim generated cash flow from operations in the six month period ended June 30, 2006 of $1,482,249 ($0.03 per share) compared to cash flow from operations of $787,205 ($0.02 per share) in the comparable period in 2005. Net income in the first six months of 2006 was $1,455,967 ($0.03 per share) compared to a net loss of $946,515 ($0.02 per share) in 2005. Net income increased due to higher revenues on increased oil, gas and NGL prices over the comparable period and gain on sale of non-core assets.

At June 30, 2006, Antrim had working capital of $35,024,673 (December 31, 2005 - $29,969,247) including unrestricted cash of $31,345,093 (December 31, 2005 - $33,209,478) and no debt. The Company set aside and restricted at June 30, 2006 cash of $28,704,807 to support a letter of credit established for drilling the Causeway prospect. Working capital increased following the completion of a public offering in May 2006 of 14,750,000 Common Shares at a price of $1.95 per share for gross proceeds of $28.8 million.

OVERVIEW OF OPERATIONS

Argentina- NorthWest Basin

In June 2006, Antrim and its partners in the Puesto Guardian field and neighbouring Capricorn licence began an extensive 387 km2 3-D seismic acquisition program over the properties which could lead to the drilling of new wells to add further production and reserves from the region. Antrim has extended the Capricorn licence into a second term with the relinquishment of 50% of the acreage and the commitment to drill an exploration well on the licence in 2006-2007.

Net oil production from the Puesto Guardian field in Argentina's NorthWest Basin in the first half of 2006 was 328 barrels of oil per day compared to 438 barrels of oil per day in the first half of 2005. Oil production decreased due to natural field decline and limited workovers in the period.

Argentina - Tierra del Fuego

In the first half of 2006, significant gas, NGL (propane and butane) and condensate production from Antrim's successful multi-well drilling program remained behind pipe while additional compression, pipeline and other facilities were put into place. In late July 2006, Antrim began to deliver a portion of gas behind pipe to the San Luis gas plant through a newly completed 10 km high pressure gas pipeline. Gas and NGL production at the end of July 2006 was 3.9 million cubic feet per day and 51 barrels per day, respectively, compared to gas and NGL production in the first half of 2006 of 2.1 million cubic feet per day and 47 barrels per day, respectively. Gas and NGL production from February 14, 2005 to June 30, 2005 was 2.4 million cubic feet per day and 51 barrels per day, respectively.

The additional gas being delivered to the San Luis gas plant represents only a portion of the gas tested from Antrim's ongoing multi-well drilling program on the concessions. Wells tested to date have tested very high rates of gas, NGL's and condensate. Antrim and its partners have to date tested a cumulative 50.4 million cubic feet per day (Antrim net - 13.0 million cubic feet per day) wet gas from the drilling program. Due to the high rates encountered, additional compression, pipeline and processing facilities are being sourced to bring these wells onto production.

Net oil production from the Tierra del Fuego concessions in the first half of 2006 was 155 barrels of oil per day compared to 131 barrels of oil per day from February 14, 2005 to June 30, 2005.

In June 2006, Antrim announced that the tenth well in the drilling program had resulted in a new oil discovery and had been placed on production at a gross initial rate of 450 barrels of oil per day. Net oil production to Antrim from the concessions is currently 266 barrels per day and is being sold with reference to current world oil prices. Drilling on the concessions continues with a second potential oil well having been identified and the current drilling rig contract extended to October 31, 2006.

Argentina - Medianera

On February 24, 2006, Antrim completed the acquisition of a 70% working interest in the producing Medianera Block in Rio Negro Province, Neuquen Basin, Argentina. The cost of the acquisition was approximately US$1.2 million after closing adjustments. The Medianera field was discovered in 1961 and the licence covers an area of 53 km2 (13,000 acres). It is located in central Argentina in the Neuquen Basin, Argentina's most prolific oil and gas basin. Oil production net to Antrim from February 24, 2006 to June 30, 2006 was 19 barrels of oil per day.

Antrim believes the Medianera block has significant exploitation and exploration potential, both uphole and from deeper horizons. No deep wells have been drilled on the block to date. In July 2006, Antrim and its partner in the field began a 3-D seismic acquisition program over the whole property. The operator of Antrim's concessions in Tierra del Fuego, Argentina, has acquired the remaining 30% working interest in the block and is the operator of the block.

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

Drilling operations on the Company's East Causeway prospect began in early June 2006. The Causeway prospect is on the prospective Osprey Ridge Trend which consists of a series of fault-bounded, staircase like structures extending northeast from Block 211/22 SE onto Block 211/23d. In July 2006, Antrim announced that the well, 211/23d-17z, was drilled as planned both at a high angle and horizontally through the prospective zones to a measured depth of 14,900 ft (4,542 m), representing a true maximum vertical depth of 10,370 ft (3,161 m). Electric log and other well data received to date indicate that the well intersected approximately 1,185 ft (361 m) of net oil-bearing sandstone representing 77 ft (23.5 m) net vertical thickness of potential reservoir. Prospective reservoirs included the Jurassic Ness and Tarbert Formations drilled in two fault compartments.

In August 2006, Antrim announced the results of tests of the Tarbert and Ness prospective reservoirs located in the westernmost of the two fault compartments. Combined test rates from these prospective reservoirs was 14,500 barrels of oil per day. Test results did not include the combined intervals tested at rates up to 8,100 barrels of oil per day in the previously drilled and now suspended well 211/23b-11. These previously tested intervals were also intersected and logged in the horizontal section of the current well 211/23d-17z. Based on the results of these tests, Antrim intends to followup the discovery with a drilling program commencing in 2007.

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. 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 press release.

Copies of Antrim's 2006 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.



Antrim Energy Inc.
Consolidated Balance Sheets
As at June 30, 2006 and December 31, 2005 (unaudited)
------------------------------------------------------------------------

2006 2005
$ $
------------ ------------
Assets
Current assets
Cash and cash equivalents 31,345,093 33,209,478
Restricted cash 28,704,807 -
Accounts receivable 2,689,687 2,208,801
Inventory and prepaid expenses 520,445 354,121
Other current assets 819,212 1,209,615
------------ ------------
64,079,244 36,982,015

Petroleum and natural gas properties 45,612,061 22,950,936
Office equipment 88,740 103,547
Future income taxes - 14,537
Other non-current assets 2,677,806 175,986
------------ ------------

Total Assets 112,457,851 60,227,021
------------ ------------
------------ ------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 28,668,872 6,981,538
Income taxes payable 385,699 31,230
------------ ------------
29,054,571 7,012,768

Future income taxes - 30,508

Asset retirement obligation 1,421,852 554,603
------------ ------------
30,476,423 7,597,879

Shareholders' Equity

Share capital 96,443,901 70,046,407
Contributed surplus 3,616,180 2,117,355
Deficit (18,078,653) (19,534,620)
------------ ------------

81,981,428 52,629,142
------------ ------------

Total Liabilities and Shareholders' Equity 112,457,851 60,227,021
------------ ------------
------------ ------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the periods ended June 30, 2006 and 2005 (unaudited)
------------------------------------------------------------------------

Three months ended June 30, Six months ended June 30,
2006 2005 2006 2005
$ $ $ $
----------------------------------------------------
Revenue
Oil and gas sales 2,766,687 2,812,134 5,607,508 5,033,818
Royalties (369,017) (367,908) (730,868) (655,242)
------------- ------------ ------------ ------------

2,397,670 2,444,226 4,876,640 4,378,576

Interest and other
income 275,965 103,230 588,935 172,486
Gain on sale of
petroleum and
natural gas
properties 1,466,864 - 1,466,864 -
------------- ------------ ------------ ------------

4,140,499 2,547,456 6,932,439 4,551,062
------------- ------------ ------------ ------------

Expenses
Operating 964,933 898,539 1,669,209 1,439,306
General and
administrative 866,539 817,367 1,514,170 1,604,122
Stock-based
compensation 360,204 105,820 566,533 239,030
Depletion and
depreciation 422,442 460,960 897,442 885,606
Accretion of asset
retirement
obligations 13,038 15,300 24,131 30,422
Foreign exchange
loss 461,380 95,784 486,063 107,942
Write-off of
impaired assets - 578,662 - 578,662
------------- ------------ ------------ ------------

3,088,536 2,972,432 5,157,548 4,885,090
------------- ------------ ------------ ------------

Income (loss) for
the period before
income taxes 1,051,963 (424,976) 1,774,891 (334,028)

Income taxes
Current 141,987 171,652 313,884 612,487
Future - - 5,040 -
------------- ------------ ------------ ------------

141,987 171,652 318,924 612,487
------------- ------------ ------------ ------------

Net Income (Loss)
for the Period 909,976 (596,628) 1,455,967 (946,515)
Deficit - Beginning
of Period (18,988,629) (16,694,938) (19,534,620) (16,345,051)
------------- ------------ ------------ ------------
Deficit - End of
Period (18,078,653) (17,291,566) (18,078,653) (17,291,566)
------------- ------------ ------------ ------------
------------- ------------ ------------ ------------

Net Income (Loss)
Per Common Share
- Basic 0.02 (0.01) 0.03 (0.02)
Net Income (Loss)
Per Common Share
- Diluted 0.01 (0.01) 0.02 (0.02)



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