Athlone Energy Ltd.

Athlone Energy Ltd.

November 14, 2007 17:16 ET

Athlone Energy Ltd.: Operating Funds Increased, Operational Update

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2007) -

Operating Funds Increased

Athlone Energy Ltd. ("Athlone" or the "Company") (TSX VENTURE:ATH) is pleased to announce that due to the strong performance during the current fiscal year, the Company has received approval from its principal lender to increase the Company's revolving loan facility to $5.0 million from $4.2 million. In addition to the revolving loan the Company maintains a development loan facility in the amount of $800,000. The total credit line available to Athlone is now $5.8 million. This increase of available funds will allow more rapid development of the Company's recently discovered oil pool at Vermilion, Alberta.

Operational Update

At Grand Forks in Southern Alberta the first well on the seven section farmin was spudded on November 10, 2007. The primary target is medium oil and if successful there will be three to four follow-up locations. With positive results this will establish a new core area for Athlone.

In the Lloydminster area a new well at South Lloydminster is scheduled to spud on November 14, 2007. Surface preparations for three new locations at Vermilion are underway. Final interpretation of a 3D seismic survey completed on a new section of land at Marwayne is almost complete. At Kitscoty, an up hole gas zone was completed in a previously suspended well bore and was placed on production at a rate of 137 mcf/d.

On October 25, 2007, the government of Alberta announced its proposal for a new royalty framework in Alberta. The proposed changes to the Alberta Crown royalty framework are effective on January 1, 2009, if they are enacted. Athlone had conducted a preliminary review based on the proposed legislation and has concluded that the impact of the changes on existing operations would not be material on both a cash flow and net asset value basis.

Corporate Appointments

Paul S. Reynolds has been appointed Chief Financial Officer. Mr. Reynolds appointment follows the resignation of Robert Culbert who will remain a director of the Company. The board of directors would like to thank Mr. Culbert for his past contributions in the office of CFO.

Stock Options

The Company, pursuant to its stock option plan, has granted incentive stock options to directors, officers, employees and consultants to purchase up to 1,325,000 shares in the capital stock of the Company. The options are exercisable at a price of $0.60 per share on or before November 7, 2009. Certain vesting provisions will apply. The Company's stock option plan was approved by the shareholders at the Annual General Meeting on July 18, 2007.

About Athlone Energy Ltd.

Athlone Energy Ltd. is an active junior oil and gas exploration company with core assets in Alberta and Saskatchewan. For further information, please refer to the Company's website: or alternatively on

The term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 mcf) to one barrel (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.

The term "operating cash flow" does not have a meaning assigned under GAAP and represents cash flow generated from operations before deducting non-cash expenditures.

This information contains forward-looking statements (forecasts) under applicable securities laws. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment. Many of these factors can be difficult to predict. As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements.

Copyright (C) 2007 ATHLONE ENERGY LTD. (TSX VENTURE:ATH). All rights reserved. For more information visit our website at or send

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

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