Antrim Energy Inc.
TSX : AEN
AIM : AEY

Antrim Energy Inc.

May 15, 2008 17:35 ET

Antrim Energy Inc. Announces 2008 First Quarter Financial and Operational Results

CALGARY, ALBERTA AND LONDON, UNITED KINGDOM--(Marketwire - May 15, 2008) -

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

Antrim Energy Inc. ("Antrim") (TSX:AEN) (AIM:AEY) today reported its financial and operational results for the three months ended March 31, 2008.

HIGHLIGHTS:

- Successful drilling on the UK Fyne Field

- Rig under contract to accelerate UK drilling program

- Agreed terms for a $50 million working capital facility

- Continued drilling and infrastructure development in Argentina

In the first quarter, Antrim successfully drilled the Antrim-operated well 21/28a-9 on the Fyne Field in the UK Central North Sea. The multi-lateral drilling program encountered significant oil columns in each leg, with the final sidetrack 21/28a-9y now cased to be used as a future production well.

With the successful results from the initial Fyne drilling program, further appraisal drilling and development can be accelerated using the Transocean Prospect semi-submersible drilling rig under contract to Antrim in June 2008. Further appraisal drilling activity is also planned for the Causeway development. Our growth through the drill bit, and drive to bring new reserves to production as quickly as possible, means we are well positioned to transform our assets into a source of growing cash flow for our shareholders.

Antrim anticipates funding its growth, where possible, with pre-development debt facilities and upon field development approval, senior field development debt facilities. In the first quarter of 2008, Antrim announced it had agreed terms for an initial $50 million working capital facility to be available for pre-development costs associated with the Causeway property.

In Argentina, quarterly production remained stable while significant additional drilling and infrastructure development work continued in Tierra del Fuego. Cash flow from operations increased in the three months ended March 31, 2008 to $1.4 million from $0.8 million in the first quarter of 2007.

In the first quarter of 2008, Antrim changed its reporting currency from Canadian to US dollars. All comparative financial information has been translated and restated as if the US dollar had been used as the Company's reporting currency.



Financial and Operating Results (unaudited) Three Months Ended
March 31,
2008 2007
----------------------------------------------------------------------------
Financial Results (US$000's except per share amounts)
-----------------------------------------------------
Revenue 3,724 3,358
Cash flow from operations 1,439 795
Cash flow from operations per share 0.01 0.01
Net income (loss) (808) (1,084)
Net income (loss) per share - basic (0.01) (0.01)
Working capital 70,350 88,924
Expenditures on petroleum and natural gas properties 16,647 3,043
Debt - -

Common Shares Outstanding (000's)
---------------------------------
End of period 117,599 95,202
Weighted average - basic 117,581 88,258
Weighted average - fully diluted 121,999 91,574

Production
----------
Oil , natural gas and NGL production (boe per
day) (1) 1,503 1,502

(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 quarter of 2008 was 1,503 boepd compared to 1,502 boepd for the comparable period in 2007 and 1,553 boepd in the fourth quarter of 2007. Gas plant construction and remediation in Tierra del Fuego produced some variation in production rates with corporate production reaching as high as 2,000 boepd in January, 2008. Average net oil production in the three month period ended March 31, 2008 was 657 bopd compared to 683 bopd for the comparable period in 2007. Oil prices averaged $44.42 per barrel in the three month period ended March 31, 2008 compared to $42.90 per barrel for the comparable period in 2007.

Average net gas production in the three month period ended March 31, 2008 was 4.7 mmcf/d compared to 4.5 mmcf/d for the comparable period in 2007. Sales gas prices in Argentina averaged $1.00 per mcf in the first quarter of 2008 compared to $1.24 per mcf for the comparable period in 2007. Gas prices decreased as a greater proportion of gas production in the period was delivered to the Tierra del Fuego residential market. The price received for gas is expected to increase significantly following completion of the tie-in to the San Martin pipeline.

Antrim had cash flow from operations of $1,438,905 ($0.01 per share) in the first quarter of 2008 compared to $795,346 ($0.01 per share) for the comparable period in 2007. Net loss in the first quarter of 2008 was $807,720 ($0.01 per share) compared to a net loss of $1,083,540 ($0.01 per share) for the comparable period in 2007. Net loss decreased due to increased net revenue, after royalties and export taxes, higher interest income on greater cash balances and foreign exchange gains in the period, offset to a lesser degree by increased general and administrative costs, stock based compensation expense and higher depletion costs.

At March 31, 2008, Antrim had working capital of $70,349,563 (December 31, 2007 - $88,923,886), unrestricted cash of $71,183,830 (December 31, 2007 - $98,794,077) and no debt. Restricted cash at March 31, 2008 of $21,870,849 relates to US dollar and Pound Sterling denominated standby letters of credit issued with respect to the Company's 2008 drilling program in the UK North Sea. Accounts payable and accrued liabilities increased to $28,707,403 at March 31, 2008 primarily as a result of the UK drilling program.

In the United Kingdom, drilling commenced in March 2008 on the Fyne Field. A second rig contract has been signed which will provide Antrim with the Transocean Prospect semi-submersible drilling rig for a minimum of 80 days scheduled to begin in June 2008. The rig rate is approximately $300,000 per day. The drilling contract will allow Antrim to accelerate appraisal activity on the Company's existing properties in the Northern and Central North Sea and is also expected to provide Antrim with the flexibility to add additional drilling opportunities to its 2008 program.

A field development plan (FDP) is currently being prepared. Further Causeway drilling is planned for 2008 including at least one pressure support well. Facility construction is also planned for 2008 on approval of the FDP.

In March 2008, Antrim announced that it had agreed terms for a $50 million working capital facility to be available for pre-development costs associated with the Causeway property. The working capital facility is subject to satisfactory due diligence, execution of full documentation and achievement of all conditions precedent. To date, no amounts have been drawn on this facility. Upon approval of the FDP, the facility is expected to be replaced with a $150 million senior secured field development facility and $40 million contingent cost overrun facility.

Cash flow from operations in Argentina is expected to be reinvested in Argentina during the year. In Tierra del Fuego, 16 wells are expected to be drilled in 2008 and additional 3D seismic is also planned. Pipeline and facility expansion for increased oil and gas production continue. Construction of a new gas pipeline, tie-in to the San Martin pipeline and installation of additional compression facilities is expected to be completed by the third quarter of 2008. Upon completion, gross gas processing capacity is expected to increase to approximately 40 mmcf per day at which time previous gas discoveries can be placed on production.

In October 2007, Antrim was awarded an exploration licence for the Tres Nidos Sur Block immediately adjacent to and north of the Medianera Block in the Neuquen Basin. In 2008, Antrim plans to coordinate exploration and development of the Tres Nidos Sur Block with the Medianera Block. Antrim expects to acquire 50 km2 of 3D seismic in the year and, up to six wells are planned to be drilled on the two blocks, subject to rig availability.

OVERVIEW OF OPERATIONS

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

Antrim intends to follow-up its 2007 Causeway drilling program with additional appraisal/development drilling in 2008. Antrim has contracted AGR Peak Well Management of Aberdeen and the semi-submersible drilling rig the Transocean Prospect for the drilling program. Antrim has operatorship and a 65.5% working interest in the Causeway Blocks 211/22a South East and 211/23d.

Preparation of a Field Development Plan (FDP) to be submitted to the Department for Business Enterprise and Regulatory Reform (DBERR) is proceeding. Facility construction is planned on approval of the FDP.

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

In April 2008, Antrim completed drilling operations on the Antrim-operated well 21/28a-9 on the Fyne Field in the UK Central North Sea. The multilateral 21/28a-9 well was drilled as planned with three legs, one pilot hole and two sidetracks into the Eocene Tay Sandstone. All three holes encountered significant oil columns. As originally designed, the final sidetrack 21/28a-9y has been cased to be used as a future production well.

Full analysis of the log and test data from 21/28a-9y has led to an upward revision of the net oil pay thickness from the previously reported 52 ft True Vertical Depth (TVD) net oil pay and 35 ft net gas pay to 65 ft net oil pay and 30 ft net gas pay. As designed, the well was drilled at a 60 degree angle resulting in wellbore measured thicknesses of 120 ft net oil pay and 47 ft net gas pay. The oil and gas pay intervals in Fyne are separate with the gas pay confined to the Upper Tay Formation and the oil pay contained within several sandstones in the Middle and Lower Tay Formations.

Logging and testing results indicate that the Tay sandstones penetrated in all three legs of the well are very porous (average 33%) and highly permeable. Oil recovered from the reservoir from a Modular Formation Dynamics Test was analyzed and shown to have an API of 25 degrees with a viscosity very similar to the viscosity of Tay Formation oil from the producing fields in the proximity of Fyne. Test data indicates potential production rates of between 3,000 and 4,500 bopd, in line with the test results from the Fyne discovery well (21/28a-2) drilled in 1986. Internal estimates indicate that there is sufficient gas in the Upper Tay to provide artificial lift for oil production from the Middle and Lower Tay sandstones.

The Fyne drilling operation and results from the drilling and logging program were at the upper end of Antrim's pre-drill expectations of reservoir quality, reservoir thickness and reservoir continuity. The well location was based on high quality 3D seismic acquired in 2007 over the entire block. A number of other drilling prospects on the block have been identified from the 3D seismic.

At year-end 2007, the Fyne and Dandy licence as a whole was determined to hold 131 million barrels of oil in place or 21 million barrels of recoverable oil (Antrim net 98 million barrels and 16 million barrels respectively). The reservoir information collected from this operation will be supplied to independent engineering evaluator McDaniel & Associates to produce an updated reserve report on the field.

Antrim expects to accelerate the Fyne appraisal and development using the contracted Transocean Prospect which is scheduled to begin a multi-well drilling program for Antrim in June of this year. Two additional wells are planned on the field before the company submits an application to DBERR for development approval. The Fyne Field is on trend with several other Tay fields in the area, including the Guillemot, Pict and Saxon developments. Oil from the Fyne field, similar to adjacent fields, is likely to be produced through a Floating Production Storage and Offloading (FPSO) system and Antrim is actively searching for a suitable vessel. Fyne is also situated approximately 20 kilometres from existing infrastructure which provides production services for several fields in the area.

Assuming FDP approval is granted in 2009, first production is targeted for as early as 2010. Antrim is operator of the licence and holds a 75% working interest in the block. Antrim acquired its interest in the block in November 2006 and has agreed to pay the seller of the block an additional $10 million on approval of a FDP.

United Kingdom - Block 211/22a North West ("Kerloch")

In late 2007, Antrim participated in drilling the non-operated Kerloch prospect in Block 211/22a North West. The well, approximately 10 km northwest of Causeway, discovered a 116 foot thick oil column in the Ness Formation. The Kerloch well was not tested and was suspended to allow for potential re-entry and future use. Further technical evaluation of the prospect will be undertaken in 2008. Antrim holds a 21% working interest in Block 211/22a North West.

Argentina - Tierra del Fuego, Austral Basin

In September 2007, Antrim announced the start of its planned two-year drilling program in Tierra del Fuego. To date, Antrim has participated in drilling 12 wells on the concessions. Six wells have targeted the Los Patos oil pool discovered in 2006. Of these wells, three wells have been completed and placed on production with a further two wells awaiting tie in or completion. One well had mechanical problems and could not be salvaged. An additional four wells have been drilled targeting gas in the Los Patos, Los Flamencos, and San Luis fields. Gas development, including additional treatment and compression facilities, is being undertaken in anticipation of completion later this year of improved gas transportation capacity from the concessions. The remaining two wells of the 12 wells drilled to date target continued development of the Las Violetas oil field.

Installation of a pipeline that will connect the Las Violetas licence to the San Martin pipeline and an expansion of gas processing facilities are in progress. Construction of the new gas pipeline, tie-in to the San Martin pipeline and installation of additional compression facilities is expected to be completed by the third quarter of 2008. Upon completion, gross gas processing capacity is expected to increase to approximately 40 mmcf per day at which time previous gas discoveries can be placed on production. 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 quarter of 2008 was 1,162 barrels of oil equivalent per day (boepd) compared to 1,155 boepd for the comparable period in 2007. Net oil production in the first quarter of 2008 was 316 bopd compared to 335 bopd for the comparable period in 2007. Gas and natural gas liquids (NGL) production in the first quarter of 2008 was 4.7 mmcf/d and 67 barrels per day, respectively. Gas and NGL production for the comparable period in 2007 was 4.5 mmcf/d and 71 barrels per day, respectively.

Argentina - Medianera and Tres Nidos Sur, Neuquen Basin

Net production to Antrim from the Medianera licence in the first quarter of 2008 was 61 bopd compared to 25 bopd for the comparable period in 2007. Antrim is planning a multi-well follow-up drilling program on the licence in 2008. Antrim has a 70.0% working interest in the Medianera and Tres Nidos Sur licences. Under the terms of the Tres Nidos Sur licence, Antrim must acquire a minimum of 50 km2 of 3D seismic in 2008 and drill an exploration well in 2009.

Argentina - North West Basin

On the Capricorn licence, the second of two wells drilled under a previously announced farmout agreement is currently being evaluated with results expected in the second quarter of 2008.

Net production to Antrim from the Puesto Guardian licence in the first quarter of 2008 was 280 bopd compared to 323 bopd for the comparable period in 2007. Antrim has a 40% working interest in the Puesto Guardian licence.

Antrim's 2008 first 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 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, 2007 and dated March 31, 2008 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 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 March 31, 2008 and December 31, 2007 (unaudited)
----------------------------------------------------------------------------

2008 2007
US $ US $
------------- -------------
Assets
Current assets
Cash and cash equivalents 71,183,830 98,794,077
Restricted cash (note 4) 21,870,849 6,791,941
Accounts receivable 5,246,841 5,035,160
Inventory and prepaid expenses (note 5) 755,446 842,497
------------- -------------
99,056,966 111,463,675

Petroleum and natural gas properties (note 6) 199,239,087 189,890,781
Office equipment 731,891 559,673
Future income taxes 808,008 911,783
Investments and other non-current assets
(note 7) 4,715,209 4,568,955
------------- -------------

Total Assets 304,551,161 307,394,867
------------- -------------
------------- -------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 28,707,403 22,539,789
------------- -------------
28,707,403 22,539,789

Asset retirement obligation 11,322,078 9,650,649
------------- -------------
40,029,481 32,190,438

Commitments and contingencies (note 12)

Shareholders' Equity

Share capital (note 8) 262,670,462 262,600,117
Contributed surplus (note 9) 7,864,191 6,706,403
Deficit (24,803,946) (23,996,226)
Accumulated other comprehensive income 18,790,973 29,894,135
------------- -------------

264,521,680 275,204,429
------------- -------------
Total Liabilities and Shareholders' Equity 304,551,161 307,394,867
------------- -------------
------------- -------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the three months ended March 31, 2008 and 2007 (unaudited)
----------------------------------------------------------------------------

2008 2007
US $ US $
------------- -------------

Revenue
Oil and gas sales 3,723,949 3,357,685
Royalties (438,545) (393,023)
Export tax (49,732) (542,454)
------------- -------------

3,235,672 2,422,208

Interest and other income 1,187,013 599,985
------------- -------------

4,422,685 3,022,193
------------- -------------
------------- -------------

Expenses
Operating 1,044,650 676,927
General and administrative 1,998,790 1,288,166
Stock-based compensation 1,157,789 719,402
Depletion and depreciation 1,230,113 848,667
Accretion of asset retirement obligations 235,911 44,817
Foreign exchange (gain) loss (505,246) 474,164
------------- -------------

5,162,007 4,052,143
------------- -------------

Loss for the period before income taxes (739,322) (1,029,950)

Income tax expense (recovery)
Current 164 63,729
Future 68,234 (10,139)
------------- -------------

68,398 53,590
------------- -------------

Net Loss (807,720) (1,083,540)
Deficit - Beginning of Period (23,996,226) (15,568,601)
------------- -------------
Deficit - End of Period (24,803,946) (16,652,141)
------------- -------------
------------- -------------

Net Loss Per Common Share - Basic (0.01) (0.01)
Net Loss Per Common Share - Diluted (0.01) (0.01)


Antrim Energy Inc.
Consolidated Statements of Comprehensive Income (Loss) and Accumulated Other
Comprehensive Income (Loss)
For the three months ended March 31, 2008 and 2007 (unaudited)
----------------------------------------------------------------------------

2008 2007
US $ US $
------------- -------------

Net loss for the period (807,720) (1,083,540)

Other Comprehensive Income (Loss)
Unrealized gain (loss) on translation of
consolidated financial statements into
reporting currency (11,103,162) 1,305,390
------------- -------------

Comprehensive Income (Loss) (11,910,882) 221,850
------------- -------------
------------- -------------

Accumulated Other Comprehensive Income (Loss) -
Beginning of Period 29,894,135 (2,170,027)
Other comprehensive income (loss) (11,103,162) 1,305,390
------------- -------------
------------- -------------
Accumulated Other Comprehensive Income (Loss) -
End of Period 18,790,973 (864,637)
------------- -------------
------------- -------------


Antrim Energy Inc.
Consolidated Statements of Cash Flows
For the three months ended March 31, 2008 and 2007 (unaudited)
----------------------------------------------------------------------------

2008 2007
US $ US $
------------- -------------
Operating Activities
Net loss for the period (807,720) (1,083,540)
Items not involving cash:
Depletion and depreciation 1,230,113 848,667
Accretion of asset retirement obligations 235,911 44,817
Stock-based compensation expense 1,157,789 719,402
Foreign exchange loss (gain) (445,422) 276,139
Future income taxes 68,234 (10,139)
------------- -------------

1,438,905 795,346
Change in non-cash working capital items (132,579) (597,916)
------------- -------------

1,306,326 197,430
------------- -------------

Financing Activities
Issue of common shares 37,722 20,132,590
Share issue expenses (5,098) (26,542)
------------- -------------

32,624 20,106,048
------------- -------------

Investing Activities
Office equipment (233,110) (111,643)
Petroleum and natural gas properties (16,647,063) (3,042,962)
Restricted cash (15,632,242) -
Other current assets - 266,157
Other non-current assets (336,481) (55,204)
Change in non-cash working capital items 6,560,948 1,597,843
------------- -------------

(26,287,948) (1,345,809)
------------- -------------

Effect of exchange rate changes on cash and
short term deposits 891,783 (243,617)
Net effect of foreign exchange translation on
cash flows (3,553,032) 657,269

Net increase (decrease) in cash and cash
equivalents (27,610,247) 19,371,321
Cash and Cash Equivalents - Beginning of Period 98,794,077 46,092,364
------------- -------------
Cash and Cash Equivalents - End of Period 71,183,830 65,463,685
------------- -------------
------------- -------------

Supplemental Cash Flow Information
Interest received 844,660 490,681
Taxes paid 164 146,222


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