Athlone Energy Ltd.
TSX VENTURE : ATH

Athlone Energy Ltd.

June 27, 2008 14:26 ET

Athlone Energy Ltd. Reports Record Growth in First Quarter Results For the Period Ending April 30, 2008

CALGARY, ALBERTA--(Marketwire - June 27, 2008) - Athlone Energy Ltd. ("Athlone" or the "Company") (TSX VENTURE:ATH) is pleased to report its financial and operating results for the three month period ending April 30, 2008. Complete financials are available on www.sedar.com or the company's website www.athlone.com. The three month period ended April 30, 2008 was a record period for Athlone in terms of production, revenue and cash flow. Highlights of the 1st quarter ended April 30, 2008 in comparison to April 30, 2007 are:

- Gross oil and gas revenue of $4,398,050 compared to $1,288,579, an increase of 241%;

- Operating cash flow of $2,504,236 compared to $459,638, an increase of 453%;

- Net revenue of $1,301,307 compared to $11,531;

- Earnings per share of $0.04 as compared to $0.00;

- Average production of 661 boepd compared to 332 boepd, an increase of 99%.

As a result of Athlone's strong performance over the past year, Athlone has received approval from its principal lender to increase the Company's revolving loan facility to $10.5 million up from $5.2 million. The Company has suspended its previous development loan facility of $0.8 million.

Heavy oil pricing has been particularly strong in recent months with the price for Hardisty 12 degree API reaching a record $97.82 in May 2008.

On May 14, 2008 Athlone announced that the board of directors unanimously approved a process to review strategic alternatives to maximize shareholder value. During the strategic alternative process Athlone will carry on with business as usual and take advantage of opportunities given the current high commodity price environment. Athlone has recently drilled, cased and completed a well at its South Lloyd property. Operational updates will be provided on a regular basis.

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: www.athlone.com or alternatively on www.sedar.com.

On behalf of the Board of Directors of ATHLONE ENERGY LTD.

Garry Lohuis, President & CEO

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) 2008 ATHLONE ENERGY LTD. (TSX VENTURE:ATH) All rights reserved. For more information visit our website at http://www.athlone.com/ or send mailto:info@athlone.com.

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

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