Antrim Energy Inc.
TSX : AEN
AIM : AEY

Antrim Energy Inc.

August 14, 2007 17:52 ET

Antrim Energy Inc. Announces 2007 Second Quarter Financial and Operational Results

CALGARY, ALBERTA AND LONDON, UNITED KINGDOM--(Marketwire - Aug. 14, 2007) -

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

Antrim Energy Inc. (TSX:AEN) (AIM:AEY) ("Antrim") today reported its financial and operational results for the three and six month periods ended June 30, 2007.

HIGHLIGHTS:

- Successful drilling results from first and second Central Causeway appraisal wells

- Completed 3D seismic acquisition over Fyne & Dandy fields

- 73% increase in production over the comparable period in 2006

- Commenced drilling on Medianera licence, Argentina

- Completed $57.5 million financing

Antrim continues to successfully execute its strategy of adding substantial value to the Company's properties through the drill bit.

In the United Kingdom, Antrim began drilling in late May 2007 the first of three wells designed to evaluate the potential of the Central Causeway fault compartment and appraise a previous discovery on the southwestern fault compartment. In July 2007, Antrim announced that the first well flowed at a combined rate of 6,300 bopd from the Ness and underlying Etive formations. Antrim commenced drilling the second well in the Central Causeway compartment in July 2007 and is currently casing the well for future production.

Plans to drill the non-operated East Kerloch prospect on Block 211/22a northwest in the fourth quarter of 2007 remain on schedule. Acquisition of 3D seismic over the Fyne and Dandy oil fields was completed in June 2007 with the expectation that the new seismic will lead to a drilling program commencing in the first quarter of 2008.

In Argentina, drilling on the Tierra del Fuego licences is expected to recommence in late August 2007. At least two years of additional drilling is planned on the licences following the Company's successful 2006 drilling program and acquisition of new 3D seismic completed in the first quarter of 2007.



Financial and Operating Results (unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
----------------------------------------------------------------------------
Financial Results ($000's except
per share amounts)
------------------------------------
Revenue 3,649 2,767 6,947 5,608
Cash flow from operations (1,585) 239 (977) 1,482
Cash flow from operations per share (0.02) 0.00 (0.01) 0.03
Net income (loss) (3,659) 910 (4,929) 1,456
Net income (loss) per share - basic (0.04) 0.02 (0.05) 0.03
Working capital 105,730 35,025 105,730 35,025
Expenditures on petroleum and
natural gas properties 24,997 20,444 28,561 23,882
Debt - - - -

Common Shares Outstanding (000's)
------------------------------------
End of period 107,712 69,995 107,712 69,995
Weighted average - basic 102,245 63,367 95,290 59,168
Weighted average - fully diluted 104,604 65,976 97,650 61,776

Operating Results
------------------------------------
Wellhead price ($/boe) 25.28 36.19 24.85 34.83
Royalties ($/boe) (3.73) (4.87) (3.57) (4.52)
Operating expenses ($/boe) (7.19) (12.65) (6.55) (9.81)
----------------------------------------
Netback ($/boe) 14.36 18.67 14.73 20.50
----------------------------------------
----------------------------------------

Production
------------------------------------
Oil, natural gas and NGL
production (boe) 144,353 75,753 279,565 161,593
Oil , natural gas and NGL
production (boe per day)(1) 1,586 832 1,545 893

(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.


Net production to Antrim in the first half of 2007 was 1,545 boe per day compared to 893 boe per day in the first half of 2006. Average net oil production in the three and six month periods ended June 30, 2007 was 664 and 673 barrels of oil per day, respectively, compared to 492 and 493 barrels of oil per day respectively, for the comparable periods in 2006. Oil prices averaged $42.29 per barrel in the first half of 2007 compared to $53.42 per barrel in the first half of 2006. Average net gas production in the three and six month periods ended June 30, 2007 was 5.2 and 4.8 mmcf per day, respectively, compared to 1.9 and 2.1 mmcf per day, respectively, for the comparable periods in 2006. Gas volumes increased significantly following completion in July 2006 of a 10 km high pressure gas pipeline. Sales gas prices in Argentina averaged $1.69 per mcf in the first half of 2007 compared to $1.29 per mcf in the first half of 2006.

Antrim had a cash outflow from operations in the first half of 2007 of $977,074 ($0.01 per share) compared to cash flow from operations of $1,482,249 ($0.03 per share) in the first half of 2006. Cash flow from operations, excluding foreign exchange losses, was $3,127,586 ($0.03 per share). Net loss in the first half of 2007 was $4,928,671 ($0.05 per share) compared to a net income of $1,455,967 ($0.03 per share) in the first half of 2006. Net loss increased due to increased general and administrative costs, stock based compensation expense and higher depletion costs but is predominately due to foreign exchange losses related to the Company's planned 2007 capital expenditure program.

At June 30, 2007, Antrim had working capital of $105,730,117 (December 31, 2006 - $55,391,981) including cash and restricted cash of $142,781,503 (December 31, 2006 - $53,714,443) and no debt. Working capital increased following the exercise in the first quarter of 2007 of warrants issued by the Company in September 2005 and a public offering in May 2007 of 10,000,000 common shares at a price of $5.00 per common share. An over-allotment option to issue an additional 1,500,000 common shares at a price of $5.00 per share was also exercised.

OVERVIEW OF OPERATIONS

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

In May 2007, Antrim began drilling the first of three wells designed to evaluate the potential of the Central Causeway fault compartment and appraise a previous discovery on the structure. The well, the first in the previously undrilled Central Causeway fault compartment, was drilled directionally through the middle Jurassic Brent Group of sandstones to a measured depth of 12,266 ft. Tests resulted in a flow rate of up to 4,300 bopd with no water from the Ness Formation and 2,000 bopd with no water from the underlying Etive Formation. The Tarbert Formation appeared to be water-bearing at this location. With the new discovery, oil has now been established in each of the four main fault compartments on the Causeway trend. Wells drilled in the two East Causeway compartments flowed at rates of 14,500 bopd and 8,000 bopd. Antrim commenced drilling the second well in the Central Causeway fault compartment in July 2007 and is currently casing the well for future production. The third well in the program is intended to appraise the undeveloped previous discovery drilled in 1984 in the West Causeway fault compartment which tested over 5,000 bopd.

Antrim has contracted AGR Peak Well Management of Aberdeen and the semi-submersible drilling rig the Transocean Prospect for the current drilling program. Antrim has operatorship and a 65.5% working interest in the Causeway Blocks 211/22a South East and 211/23d.

United Kingdom - Block 211/22a North West

Antrim plans to participate in drilling the non-operated East Kerloch prospect in Block 211/22a North West in the fourth quarter of 2007. Drilling operations are expected to commence in October 2007. The well will target the oil prone Jurassic Brent Sandstones adjacent to the Cormorant oil field and related infrastructure. The proposed location is approximately 10 km northwest of the Causeway 211/23d-17z well drilled by Antrim in mid-2006. Antrim holds a 21% working interest in Block 211/22a North West.

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

In November 2006, Antrim acquired a 75% working interest in Block 21/28a in the Central North Sea. The block contains the undeveloped Fyne and Dandy oil fields, which have been delineated with eight wells drilled from 1971 to 1998. Antrim is operator of the licence and in June 2007 completed the acquisition of 70 km2 3D seismic. The new seismic acquisition is expected to support a drilling program commencing in the first quarter of 2008. The cost of the licence acquisition in 2006 was US$8 million. Antrim has agreed to pay the seller an additional US$10 million on approval of a field development plan.

Argentina - Tierra del Fuego

Operations in the first half of 2007 have focused on infrastructure development and the acquisition of new 3D seismic. Existing gas processing facilities in Tierra del Fuego have not been sufficient to process the additional volumes created by the new liquid-rich gas discoveries made by Antrim and partners in 2006. An expansion of gas processing facilities and installation of a pipeline that will connect the Las Violetas licence to the San Martin pipeline is in progress to accommodate these new discoveries. The expansion, delayed due to gas treatment and compression equipment availability, is projected for completion in the third quarter of 2007 and fully operational by December 2007. Once complete, it is expected to raise gross gas processing capacity to between 35 and 40 mmcf per day. Additional oil pipeline, storage and treatment facilities are also planned for 2007 to facilitate the expected increase in oil production.

In late 2006 and early 2007, the Company and its partners began the acquisition of 309 km2 of 3D seismic over the Angostura and Los Violetas licences. The 3D seismic program was initiated to expand target areas identified during the Company's successful 2006 drilling program. A drilling rig dedicated to the Tierra del Fuego licences has been contracted for the next two years. The Company anticipates that drilling on the licences will recommence in late August 2007. Antrim's working interest in the Tierra del Fuego licences is 25.78%.

Net production to Antrim from the Tierra del Fuego licences in the first half of 2007 was 1,210 boe per day compared to 553 boe per day in the first half of 2006. Net oil production in the first half of 2007 was 338 barrels of oil per day compared to 155 barrels of oil per day in the first half of 2006. Gas and natural gas liquids ("NGL") production in the first half of 2007 was 4.8 mmcf/d and 63 barrels per day, respectively. Gas and NGL production in the first half of 2006 was 2.1 mmcf/d and 47 barrels per day, respectively.

Argentina - Medianera

Antrim acquired a 70% working interest in the Medianera production licence in February 2006. The Medianera licence is located in central Argentina in the Neuquen Basin close to the Medanito and Barranca de los Loros fields. In 2006, Antrim acquired 83 km2 3D seismic over the entire licence. In May and June 2007, Antrim drilled two wells on the licence. Both wells targeted the Cretaceous and Jurassic sequence at a depth of 1,400 metres and are scheduled to be tested.

Net production to Antrim from the Medianera licence in the first half of 2007 was 27 barrels of oil per day.

Argentina - North West Basin

330 km2 of 3D seismic was acquired in 2006 over the Puesto Guardian licence in northern Argentina. The new seismic has been processed and interpretative work is in progress. Antrim intends to use the newly acquired seismic to support a drilling program in 2007-2008. Antrim has a 40% working interest in the Puesto Guardian licence.

Net production to Antrim from the Puesto Guardian licence in the first half of 2007 was 308 barrels of oil per day compared to 328 barrels of oil per day in the first half of 2006.

54 km2 of 3D seismic on the Capricorn licence was acquired in 2006. This new data is being interpreted, with results expected in the third quarter 2007. Antrim has a 50% working interest in the licence, subject to the terms of a farm-out agreement entered into in October 2006 with respect to a portion of its interest in the licence. At least one exploration well is planned in 2007 subject to confirmation of a suitable drilling location, partner approvals and securing a drilling rig.

Antrim's 2007 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.

About Antrim

Antrim Energy Inc. is an international oil and gas exploration and production company headquartered in Calgary, Alberta, Canada. Antrim's objective is to create significant wealth for its shareholders through the discovery, production and sale of oil and gas. Antrim's production and exploration operations are centered in Argentina and its high impact oil and gas exploration is focused in 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

Certain statements contained in this news 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 news release.



Antrim Energy Inc.
Consolidated Balance Sheets
As at June 30, 2007 and December 31, 2006 (unaudited)
----------------------------------------------------------------------------

2007 2006
Cdn $ Cdn $
------------- -------------
Assets
Current assets
Cash and cash equivalents 94,328,784 53,714,443
Restricted cash 48,452,719 -
Accounts receivable 5,860,164 4,111,105
Inventory and prepaid expenses 665,185 498,298
Other current assets 72,430 577,367
------------- -------------
149,379,282 58,901,213

Petroleum and natural gas properties 109,313,792 82,084,916
Office equipment 353,167 252,693
Future income taxes 300,937 263,263
Other non-current assets 3,962,296 3,649,215
------------- -------------

Total Assets 263,309,474 145,151,300
------------- -------------
------------- -------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 43,570,351 3,207,383
Income taxes payable 78,814 301,849
------------- -------------
43,649,165 3,509,232

Asset retirement obligation 3,141,032 2,308,327
------------- -------------
46,790,197 5,817,559
Commitments

Shareholders' Equity

Share capital 233,943,474 153,176,930
Contributed surplus 5,697,078 4,349,415
Deficit (23,121,275) (18,192,604)
------------- -------------

216,519,277 139,333,741
------------- -------------

Total Liabilities and Shareholders' Equity 263,309,474 145,151,300
------------- -------------
------------- -------------



Antrim Energy Inc.
Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and
Deficit
For the periods ended June 30, 2007 and 2006 (unaudited)
----------------------------------------------------------------------------

Three Months Ended June 30, Six Months Ended June 30,
2007 2006 2007 2006
Cdn $ Cdn $ Cdn $ Cdn $
------------ ------------ ------------ ------------
Revenue
Oil and gas sales 3,648,962 2,766,687 6,946,837 5,607,508
Royalties (539,156) (369,017) (999,559) (730,868)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

3,109,806 2,397,670 5,947,278 4,876,640

Interest and other income 1,242,965 275,965 1,945,812 588,935
Gain on sale of
petroleum and natural
gas properties - 1,466,864 - 1,466,864
------------ ------------ ------------ ------------

4,352,771 4,140,499 7,893,090 6,932,439
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Expenses
Operating 1,037,481 964,933 1,830,460 1,669,209
General and administrative 1,333,065 866,539 2,842,074 1,514,170
Stock-based compensation 913,884 360,204 1,756,621 566,533
Depletion and depreciation 1,133,487 422,442 2,127,650 897,442
Accretion of asset
retirement obligations 52,500 13,038 105,000 24,131
Foreign exchange loss 3,549,205 461,380 4,104,660 486,063
------------ ------------ ------------ ------------

8,019,622 3,088,536 12,766,465 5,157,548
------------ ------------ ------------ ------------

Income (loss) for the
period before income
taxes (3,666,851) 1,051,963 (4,873,375) 1,774,891

Income taxes
Current 18,315 141,987 92,970 313,884
Future (25,797) - (37,674) 5,040
------------ ------------ ------------ ------------

(7,482) 141,987 55,296 318,924
------------ ------------ ------------ ------------

Net Income (Loss) and
Comprehensive Income
(Loss) (3,659,369) 909,976 (4,928,671) 1,455,967
Deficit - Beginning of
Period (19,461,906) (18,988,629) (18,192,604) (19,534,620)
------------ ------------ ------------ ------------
Deficit - End of Period (23,121,275) (18,078,653) (23,121,275) (18,078,653)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net Income (Loss) Per
Common Share - Basic (0.04) 0.02 (0.05) 0.03
Net Income (Loss) Per
Common Share - Diluted (0.04) 0.01 (0.05) 0.02



Antrim Energy Inc.
Consolidated Statements of Cash Flows
For the periods ended June 30, 2007 and 2006 (unaudited)
----------------------------------------------------------------------------

Three months Ended June 30, Six months Ended June 30,
2007 2006 2007 2006
Cdn $ Cdn $ Cdn $ Cdn $
------------ ------------ ------------ ------------
Operating Activities
Net income (loss) for
the period (3,659,369) 909,976 (4,928,671) 1,455,967
Items not involving cash:
Gain on sale of
petroleum and natural
gas properties - (1,466,864) - (1,466,864)
Depletion and
depreciation 1,133,487 422,442 2,127,650 897,442
Accretion of asset
retirement obligations 52,500 13,038 105,000 24,131
Stock based
compensation expense 913,884 360,204 1,756,621 566,533
Future income taxes (25,797) - (37,674) 5,040
------------ ------------ ------------ ------------

(1,585,295) 238,796 (977,074) 1,482,249
Change in non-cash
working capital items 1,391,063 4,750,730 690,640 3,648,543
------------ ------------ ------------ ------------

(194,232) 4,989,526 (286,434) 5,130,792
------------ ------------ ------------ ------------

Financing Activities
Issue of common shares 59,546,890 29,067,701 83,131,017 29,138,247
Share issue expenses (2,821,905) (1,845,759) (2,852,997) (1,845,759)
------------ ------------ ------------ ------------

56,724,985 27,221,942 80,278,020 27,292,488
------------ ------------ ------------ ------------

Investing Activities
Office equipment (37,341) (19,471) (168,124) (45,345)
Petroleum and natural
gas properties (24,996,523) (20,443,514) (28,561,171) (23,882,174)
Proceeds on sale of
petroleum and natural
gas properties - 1,300,801 - 1,300,801
Restricted cash (48,452,719) (28,704,807) (48,452,719) (28,704,807)
Other current assets 193,150 179,865 504,937 390,403
Other non-current assets (248,413) (1,121,507) (313,081) (1,129,891)
Change in non-cash
working capital items 35,703,037 19,960,650 37,612,913 17,783,348
------------ ------------ ------------ ------------

(37,838,809) (28,847,983) (39,377,245) (34,287,665)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Net increase (decrease)
in cash and cash
equivalents 18,691,944 3,363,485 40,614,341 (1,864,385)
Cash and Cash
Equivalents - Beginning
of Period 75,636,840 27,981,608 53,714,443 33,209,478
------------ ------------ ------------ ------------
Cash and Cash
Equivalents - End of
Period 94,328,784 31,345,093 94,328,784 31,345,093
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Supplemental Cash Flow
Information
Interest received 1,140,879 251,610 1,715,682 550,427
Taxes paid 144,715 (232,461) 316,005 (40,585)

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information