Athlone Energy Ltd.
TSX VENTURE : ATH

Athlone Energy Ltd.

December 20, 2007 12:39 ET

Athlone Energy Ltd. Reports Record Revenue Third Quarter Report Ending October 31, 2007

CALGARY, ALBERTA--(Marketwire - Dec. 20, 2007) - Athlone Energy Ltd. ("Athlone" or the "Company") (TSX VENTURE:ATH) is pleased to announce that the Company's third quarter financial statements for the period ended October 31, 2007 together with the related management's discussion and analysis has been filed. For a complete copy of the report please visit www.sedar.com or the Company's website at www.athlone.com.

The third quarter represented record growth in terms of revenue, cash flow, production and reserve additions. This is the seventh straight quarter of revenue and production growth. Gross revenue in the third fiscal quarter was $2,274,499 compared to $1,585,727 in the second quarter, an increase of 43%. This quarter over quarter increase was the highest in the company's history.

Financial highlights of the third quarter compared to the third quarter of the previous year are:

- Gross revenue of $2,274,499 compared to $1,164,326 an increase of 95%

- Operating cash flow of $998,442 compared to $601,171 an increase of 66%

- Average production of 578 boepd compared to 300 boepd an increase of 93%

Operational highlights of the third quarter are as follows:

- One well was drilled at Vermilion, AB. This 100% working interest well was completed in October and is now on production.

Subsequent to the end of the quarter:

- In the Lloydminster area, Athlone has drilled and cased three additional heavy oil wells which are currently being completed and brought on production. One of these wells is a new test in the Marwayne area and if successful will result in six additional development locations.

- Plans for a downspacing application at Vermilion have been made and will be submitted during the fourth quarter. When granted, this downspacing will facilitate the drilling of up to 20 development locations.

At Grand Forks in Southern Alberta, Athlone exercised its drilling option on the farm-in with an intermediate sized trust. The first well was drilled to test the Sawtooth formation for medium gravity oil. The Sawtooth was water bearing and the well was abandoned. Athlone earned two sections of land by drilling this well and has until mid January, 2008 to elect to drill an additional well which would earn an additional two sections. The second well would target Bow Island gas and Athlone is currently evaluating the economics of this project.

Oil prices are forecast to remain strong which will provide a strong platform for future growth. Should natural gas pricing improve Athlone also has a number of drill ready gas locations.

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.

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 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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