Athlone Energy Ltd.
TSX VENTURE : ATH

Athlone Energy Ltd.

May 03, 2007 09:30 ET

Athlone Energy Ltd. Reports Record Revenue Significantly Expands Drilling Inventory

CALGARY, ALBERTA--(CCNMatthews - May 3, 2007) -

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Athlone Energy Ltd. ("Athlone" or the "Company") (TSX VENTURE:ATH) is pleased to provide an operational update for the period January 1, 2007 to March 31, 2007. Gross revenues for the period of approximately $1.4 million are the highest revenue to date. This compares to approximately $550,000 for the period January 1, 2006 to March 31, 2006. Athlone anticipates continued production growth as plans for activity in three geographic areas in the province of Alberta; Lloydminster, west central Alberta and southern Alberta will commence after spring breakup. Current production from field estimates is approximately 400 Boepd.

Lloydminster Heavy Oil and Gas Area: (100% Working Interest)

- 8 new wells were drilled in 2006 proving up 26 step-out development locations

- 6 new proposed wells to be drilled immediately after breakup

Athlone was 100% successful in the Lloydminster heavy oil area during 2006 with eight new wells drilled, cased and put on production. The successful drilling programs, in combination with 3D seismic programs, resulted in a significantly expanded drilling inventory of 26 low risk development step-out locations.

The Company will be drilling six new wells immediately after breakup.

To March 31, 2007, the Company had a total of 12 producing wells in the Lloydminster Area. A summary of each area follows:

South Lloyd - 4 producing wells, 2 additional drilled and cased wells and 9 follow up locations

Athlone currently has four producing wells at South Lloyd and drilled and cased two step-out development wells prior to breakup. These wells will be completed and placed on production in May 2007. Based on drilling, 3D seismic, and production results to date, the company has identified nine future follow-up locations.

Vermilion - 2 producing wells and 11 follow up locations

Athlone holds an interest in 1.75 sections of land and currently has two producing wells. Based on the production results and 3D seismic interpretation, Athlone has identified 11 follow up locations. The Company will be drilling three wells immediately after breakup in this area.

Wildmere - 1 producing well and 4 follow up locations

Athlone has one producing well and recently shot and interpreted a 3D seismic program over the landholdings. The 3D seismic program has identified another four locations. Plans are to drill one follow up development well after breakup.

Kitscoty - 5 producing wells and 2 follow up locations

Athlone currently has five producing wells. A 3D seismic program has identified two additional locations which will be drilled later this year.

West Central Alberta: (100% Working Interest)

Athlone has licensed a re-entry in West Central Alberta and proposes to commence operations in June, 2007. This prospect is targeting light oil and gas and is located close to existing infrastructure. Athlone has a 100% working interest in 2.5 sections of land in this area.

Southern Alberta: (100% Working Interest)

Athlone has negotiated a seismic option agreement with an intermediate sized Royalty Trust covering seven sections of land in the Grand Forks area of Southern Alberta. The two primary targets are medium gravity oil and natural gas. The company is in the process of interpreting the 3D seismic and has until July 31, 2007 to elect to drill a well.

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.

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.

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 http://www.athlone.com/ or send email to 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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