Antrim Energy Inc.
TSX : AEN
AIM : AEY

Antrim Energy Inc.

May 12, 2009 20:06 ET

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

CALGARY, ALBERTA--(Marketwire - May 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 month period ended March 31, 2009.

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

HIGHLIGHTS:

- Increased production in Argentina to 1,590 boepd

- New well tie-ins and additional pipeline capacity in Argentina completed on target

- Average gas price in Argentina increased 78% to $1.44 per mcf over Q1 2008

- Financial flexibility with strong cash position of US$ 31.2 million and no debt

In the first quarter 2009, average production in Argentina increased to 1,590 barrels of oil equivalent per day ("boepd") compared to 1,503 boepd in the first quarter 2008. Oil and gas revenue decreased to $3.2 million for the three months ended March 31, 2009 compared to $3.7 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. Cash flow from operations was $0.3 million for the three months ended March 31, 2009 compared to $1.4 million for the same three month period in 2008. Current production from Argentina exceeds 1,800 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 20 million barrel (gross) Fyne Field is being constructed. 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 21 km from the Fyne Field and the deployment of an independent floating production storage and offloading system ("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 Bid Round (blocks 21/24c, 21/28b and 21/29c).

Progress has been made on Antrim's Causeway FDP (submitted to the UK Department of Energy and Climate Change ("DECC") in December 2008) and work continues with the Dunlin platform operator to incorporate significant cost and time savings into the subsea completion and tie-in of the production and injection wells to the Dunlin processing facilities. Antrim plans to include these changes into an updated FDP. Geological and geophysical work including reprocessing and interpretation of Causeway 3D seismic data has been completed and will be also incorporated into the 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. Although details of the reforms have not been provided, it appears that both the Causeway and Fyne projects will receive an economic benefit from these measures.

Argentina

Commissioning of 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 was completed in mid September 2008 and has enabled Antrim to deliver gas to the Argentine mainland at higher prices. The system is currently delivering 20 (net 5.2) million cubic feet per day ("mmcf/d") to mainland markets. Antrim's focus in the first quarter 2009 has been on increasing production through well tie-ins. Antrim anticipates production in 2009 to average approximately 2,300 boepd.



Financial and Operating Results (unaudited)

Three Months Ended
March 31
2009 2008
----------------------------------------------------------------------------
Financial Results ($000 s except per share amounts)
----------------------------------------------------
Revenue 3,225 3,724
Cash flow from operations 283 1,439
Cash flow from operations per share 0.00 0.01
Net (loss) (1,850) (808)
Net (loss) per share - basic (0.01) (0.01)
Total assets 259,066 304,551
Working capital 32,431 70,350
Expenditures on petroleum and natural gas properties 2,467 16,647
Debt - -

Common Shares Outstanding (000 s)
----------------------------------
End of period 135,322 117,599
Weighted average - basic 135,322 117,581
Weighted average - diluted 135,322 121,999

Production
-----------
Oil , natural gas and NGL production
(boe per day)(1) 1,590 1503


(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.


OVERVIEW OF OPERATIONS

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

A FDP for the 20 million barrel (gross) Fyne Field is being constructed. 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 Bid Round (blocks 21/24c, 21/28b and 21/29c).

The 21/28a-2 discovery well tested up to 3,600 bopd. In August 2008, the 21/28a-10z well tested on natural flow at rates up to 4,000 bopd.

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

As previously announced, 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. 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 pending stabilization of commodity prices and the recovery of the capital markets.

Argentina - Tierra del Fuego, Austral Basin

Net production to Antrim from the Tierra del Fuego licences in the three months ended March 31, 2009 was 1,337 boepd compared to 1,162 boepd for the comparable period in 2008. Gas and natural gas liquids ("NGL") production in the first quarter 2009 was 6.2 mmcf/d and 42 barrels per day, respectively, compared to 4.7 mmcf/d and 67 barrels per day in the same period in 2008.

Commissioning of the pipeline linking the Company's gas producing fields with the San Martin gas sales line across the Straits of Magellan in mid September 2008 has enabled Antrim to redirect and deliver gas to the continent where higher prices are available. The system is currently delivering 20 (net 5.2) million cubic feet per day (mmcf/d) to mainland markets. By mid 2009, this delivery rate is expected to increase to 32 mmcf/d (net 8.2) under the terms of new sales contracts which will allow for Antrim's previous gas discoveries to be placed on production.

Net oil production in the first quarter 2009 was 267 bopd compared to 316 bopd for the comparable period in 2008. Oil production decreased due to a shippers strike in December 2008 resulting in the need to shut-in production in early January as the oil storage tanks were full. Full production was restored on January 19, 2009.

The drilling program in Tierra del Fuego was successful in adding reserves, future production potential and significant value. Current economic conditions dictated a shift in strategy away from drilling, which was discontinued in December 2008, towards increasing production through existing well tie-ins. Antrim plans to add new locations to the drilling inventory as drilling is expected to recommence in early 2010, subject to favourable commodity prices.

Argentina - Medianera and Tres Nidos Sur, Neuquen Basin

Net production to Antrim from the Medianera licence in the three month period ending March 31, 2009 was 14 bopd compared to 61 bopd for the comparable period in 2008. 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 quarter of 2009 averaged 239 bopd compared to 280 bopd for 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.

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).

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 March 31, 2009 and December 31, 2008 (unaudited)
----------------------------------------------------------------------------

March 31 December 31
2009 2008
$ $
-------------------------
Assets

Current assets
Cash and cash equivalents 31,239,554 35,337,007
Accounts receivable 5,188,464 5,186,806
Inventory and prepaid expenses (note 4) 592,421 945,363
-------------------------
37,020,439 41,469,176

Petroleum and natural gas properties (note 5) 219,206,094 226,968,744
Office equipment (note 6) 508,660 556,826
Future income taxes (note 11) 409,651 348,006
Investments and other non-current assets 1,921,586 2,018,697
-------------------------
259,066,430 271,361,449
-------------------------
-------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 4,589,641 6,201,849
-------------------------
4,589,641 6,201,849
-------------------------

Asset retirement obligation (note 7) 9,853,728 9,913,898
-------------------------

14,443,369 16,115,747
-------------------------

Commitments and contingencies (note 14)

Shareholders' Equity
Capital Stock (note 8) 311,927,578 311,927,578
Contributed surplus (note 9) 12,829,633 11,664,179
Deficit (38,877,193) (37,027,268)
Accumulated other comprehensive income (loss)
(note 10) (41,256,957) (31,318,787)
-------------------------
-------------------------
244,623,061 255,245,702
-------------------------
-------------------------
259,066,430 271,361,449
-------------------------
-------------------------


Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the three months ended March 31, 2009 and 2008 (unaudited)
----------------------------------------------------------------------------

2009 2008
$ $
------------------------
Revenue
Oil and gas 3,225,083 3,723,949
Royalties (353,205) (438,545)
Export tax (10,397) (49,732)
------------------------
2,861,481 3,235,672
Interest and other income 580,809 1,187,013
------------------------
3,442,290 4,422,685
------------------------

Expenses
Operating 1,736,275 1,254,692
General and administrative 1,308,521 1,788,748
Stock-based compensation 856,532 1,157,789
Depletion and depreciation 1,241,936 1,230,113
Accretion of asset retirement obligations 130,797 235,911
Foreign exchange (gain) loss 24,007 (505,246)
------------------------
5,370,068 5,162,007
------------------------

Loss for the period before income taxes (1,927,778) (739,322)

Income tax expense (recovery)
Current 2,937 164
Future (80,790) 68,234
------------------------
(77,853) 68,398
------------------------

Net Loss for the period (1,849,925) (807,720)

Deficit - Beginning of period (37,027,268) (23,996,226)
-------------------------
Deficit - End of year (38,877,193) (24,803,946)
-------------------------
-------------------------
Net loss per common share:
Basic (0.01) (0.01)
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, 2009 and 2008 (unaudited)
----------------------------------------------------------------------------

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

Net loss for the period (1,849,925) (807,720)

Comprehensive income (loss)
Unrealized (loss) gain on translation of
consolidated financial
statements (note 10) (9,938,170) (11,103,162)
-------------------------
Comprehensive income (loss) (11,788,095) (11,910,882)
-------------------------
Accumulated other comprehensive income (loss) -
Beginning of period (31,318,787) 29,894,135

Other comprehensive (loss) income (note 10) (9,938,170) (11,103,162)
-------------------------
Accumulated other comprehensive income (loss) -
End of period (41,256,957) 18,790,973
-------------------------
-------------------------


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

Cash Provided by (used in)

Operating Activities
Net loss for the period (1,849,925) (807,720)
Items not involving cash:
Depletion and depreciation 1,241,936 1,230,113
Accretion of asset retirement obligations 130,797 235,911
Stock-based compensation expense 856,532 1,157,789
Foreign exchange (gain) loss (15,106) (445,422)
Future income taxes (80,790) 68,234
-------------------------
283,444 1,438,905
Change in non-cash working capital items (note 12) (559,312) (132,579)
-------------------------
(275,868) 1,306,326
-------------------------
Financing Activities
Issue of common shares - 37,772
Share issue expenses - (5,098)
-------------------------
- 32,624
-------------------------
Investing Activities
Office equipment (5,859) (233,110)
Petroleum and natural gas properties (2,467,303) (16,647,063)
Restricted cash - (15,632,242)
Other non-current assets 1,644 (336,481)
Change in non-cash working capital items (note 12) (721,339) 6,560,948
-------------------------
(3,192,857) (26,287,948)
-------------------------
Effect of foreign exchange translation on cash
flows (628,728) (2,661,249)
Net (decrease) increase in cash and cash
equivalents (4,097,453) (27,610,247)
Cash and cash equivalents - Beginning of period 35,337,007 98,794,077
-------------------------
Cash and cash equivalents - End of period 31,239,554 71,183,830
-------------------------
-------------------------


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