CALGARY, ALBERTA--(Marketwire - May 25, 2011) -

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Antrim Energy Inc. ("Antrim" or "the Company") (News - Market indicators) (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, 2011.

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

HIGHLIGHTS:

• Antrim to drill three wells in the UK North Sea
• Joint venture with Premier Oil on the Fyne Field proceeding
• Heads of Terms export agreement signed for Causeway oil production
• Average gas price in Argentina increased 12% to $2.08 per mcf
• Antrim raised Cdn $48.5 million from equity financing
• Current cash position of $76 million and no bank debt

In the first quarter 2011, average production in Argentina was 1,640 barrels of oil equivalent per day ("boepd") compared to 1,835 boepd in the first quarter 2010. The decline in production is attributable to the sale of the Puesto Guardian property in February 2010, as well as scheduled gas plant maintenance and service rig repairs in Tierra del Fuego. 

Oil and gas revenue, net of royalties, was $2.4 million for the three months ended March 31, 2011 compared to $2.7 million for the same period in 2010. Net revenue decreased as a result of lower oil and gas sales partially offset by higher oil and gas prices received. Antrim generated cash flow from operations of $0.6 million for the three months ended March 31, 2011 compared to a cash flow deficiency of $0.2 million for the same period in 2010.

Antrim's average gas price for the first quarter of 2011 was $2.08 per mcf compared to $1.85 per mcf for the same period in 2010, a 12% increase. For the first quarter, oil prices averaged $55.00 per barrel compared to $46.54 per barrel for the same period in 2010, an 18% increase.

On April 5, 2011, Antrim announced that a Heads of Terms agreement had been signed for the export of Causeway crude oil to the Cormorant North production platform. The Cormorant North platform is operated by TAQA Bratani Limited and is located approximately 15 km west of the Causeway Field.

On April 4, 2011, Antrim announced that Premier Oil UK Limited ("Premier") had elected to drill the East Fyne well under the Earn-In Agreement ("EIA") previously announced on October 6, 2010. The well is an appraisal well designed to de-risk the eastern extent of the Fyne Field and is expected to be drilled before the end of 2011. Under the terms of the EIA, Antrim will be carried for all development expenses, including the East Fyne drilling costs, up to $50 million.

On March 28, 2011, Antrim announced that it had signed a Letter of Award ("LOA") to provide well project management and drilling services for two wells commencing in the third quarter of 2011. 

On March 17, 2011, Antrim issued 48,191,700 common shares at a price of Cdn $1.07 per common share for gross proceeds of Cdn $51.6 million (net proceeds Cdn $48.5 million) which included 6,191,700 common shares issued to the underwriters pursuant to the 98.3% exercise of the over-allotment option. Net proceeds from the equity financing will be used for exploration of the Greater Fyne Area including the West Teal Prospect and either the Carra or Erne Prospects. 

Financial and Operating Results (unaudited)

OVERVIEW OF OPERATIONS

United Kingdom

Fyne Field

On April 4, 2011, Antrim announced that Premier had elected to drill the East Fyne well in the Fyne Field in P077 Block 21/28a (the "Fyne Licence") under the EIA signed in October 2010. The appraisal well is designed to de-risk the eastern extent of the Fyne Field and is expected to be drilled in the third quarter of 2011. The well will be drilled at no cost to Antrim and the cost of drilling, completion and/or abandonment will be deducted from Premier's $50 million carried contribution.

The election by Premier resulted in the transfer of a 39.9% working interest and operatorship of the Fyne Licence from Antrim to Premier, with Antrim retaining a 35.1% working interest. 

The Fyne Licence expires on November 25, 2011. The UK Department of Energy and Climate Change ("DECC") has agreed to a three year extension on the condition that a Field Development Plan ("FDP") is submitted by December 25, 2011 or by June 25, 2012 if the East Fyne appraisal well is drilled on the licence prior to expiry in November 2011.

Antrim is continuing to work with Premier on the identification of alternative export routes. The preferred production system will handle up to 20,000 barrels of oil per day ("bopd") directly from the Fyne Field, with potential capacity add-ons to handle additional volume from satellite fields. First production is anticipated in the middle of 2013. 

The EIA also provides Premier with the option to participate at a "promoted" 20% to 50% working interest alongside Antrim in a planned drilling program on Antrim's 100% licences surrounding the Fyne Field (the "Greater Fyne Area").

Greater Fyne Area

In addition to the Fyne development, Antrim has identified several high priority drilling prospects on Antrim licences surrounding the Greater Fyne Area. Initial drilling targets are expected to be the West Teal Upper Jurassic Fulmar Prospect, at 10,400 feet true vertical depth, in P1625 Block 21/24b, the Carra Eocene Tay Prospect in P1563 Block 21/28b at 5,000 feet drilling depth, and the Erne Tay Prospect in P1875 Block 21/29d at 5,600 feet drilling depth. The West Teal Prospect contains a discovery well drilled by a previous operator in 1991 that was subsequently abandoned after encountering mechanical problems. 

Antrim signed a LOA for project management and drilling services for two wells commencing in the third quarter of 2011. The estimated duration for the drilling of the two wells is 50 days, not including testing. Antrim completed the site survey work over the West Teal, Carra and Erne Prospects in April 2011. Premier retains a right to participate up to 50% in the Greater Fyne Area exploration program.

Antrim announced on October 28, 2010 that two new licences were offered to Antrim by DECC in the UK 26^th Seaward Licensing Round. Licence documents were executed, effective January 10, 2011, for P1875 Block 21/29d (Antrim 100%) located in the Greater Fyne Area, and P1784 Block 21/7b (Premier 70%, Antrim 30%) located north of the Greater Fyne Area. Both blocks contain additional drilling prospects, which are currently being evaluated. 

Causeway Field

In March 2010, Antrim signed a Conditional Letter Agreement ("CLA") with Valiant Petroleum plc ("Valiant") to sell a 30% interest in P201 Block 211/22a South East Area and P1383 Block 211/23d (the "Causeway Licences"). In return, Antrim will receive up to $21.75 million towards its remaining working interest share of development costs of the Causeway Field. Completion of the transaction is subject to several conditions, including sanction of a FDP and the consent of DECC.

As part of the transaction, Antrim transferred operatorship of the licences to Valiant. Following completion of the transaction, Antrim will retain a 35.5% working interest in the Causeway Licences.

On April 5, 2011, Antrim announced that a non-binding Heads of Terms agreement had been signed for the export route of Causeway crude oil to the Cormorant North production platform. The Cormorant North platform is operated by TAQA Bratani Limited and is located approximately 15 km west of the Causeway Field.

Antrim and Valiant are currently discussing the FDP to be submitted to DECC with respect to the Causeway Field. Among the items being discussed is Valiant's estimate of reserves associated with Phase II and later production phases of the field, which may be lower than that of Antrim and its independent reserve evaluator McDaniel & Associates Consultants Ltd. Such discussions are at a preliminary stage and subject to finalization as the process of preparing the FDP evolves. Antrim expects that a finalized FDP will be submitted to DECC with a target of achieving first production in the middle of 2012.

Argentina

Antrim completed a ten (net 2.5) well drilling program on its Tierra del Fuego Concessions in southern Argentina in 2010. The program targeted the liquid-rich gas bearing sandstone reservoirs of the Springhill Formation in the Los Flamencos Field. Of the ten wells drilled, eight were cased for production and two were plugged and abandoned. Three cased wells were completed and tied-in in 2010. Of the remaining five wells, four have recently been fracture stimulated. Three wells flowed gas and are currently going through a cleanup period before final testing. The fourth well tested oil and has been put on pump for cleanup and test. The remaining cased well will be fracture stimulated later in 2011. With the stimulation and tie-in of the four wells, Antrim's daily production is expected to average approximately 1,750 boepd in 2011.

Antrim's average gas price for the first quarter of 2011 was $2.08 per mcf compared to $1.85 per mcf for the same period in 2010, a 12% increase. In the first quarter of 2011, oil prices averaged $55.00 per barrel compared to $46.54 per barrel for the same period in 2010, an 18% increase. 

Antrim sells all of its oil production and approximately 81% of its natural gas production from Tierra del Fuego to the Argentine mainland. These sales generate value-added tax ("VAT") of 21%, which is retained by Antrim due to favourable tax laws pertaining to Tierra del Fuego. VAT of $0.5 million (2010 - $0.4 million) is reported as other income and is not included in Antrim's per unit sales prices.

Antrim's field netbacks in Argentina, based on sales, were $8.96 (2010 - $7.86) per boe for the three month periods ended March 31, 2011. The increase in the 2011 field netbacks, as compared to 2010, was due to the lower operating costs partially offset by a higher proportion of gas to oil sales.

The Company applied for "Gas Plus" pricing incentives for new gas that will be produced from the wells drilled in 2010. The submission has received a favourable technical review and Antrim is now awaiting final government approval. If approved by the federal authorities, this will permit Antrim to sell a portion of its gas in the higher-priced industrial market on the mainland. 

In December 2010 Antrim entered into an agreement to acquire a 50.1% interest in and operatorship of the 307,215 acre Cerro de Los Leones Exploration Concession, located in Argentina's Neuquén Basin. Cerro de Los Leones is situated in the northern portion of the Neuquén Basin in the Province of Mendoza. The existing 2-D seismic coverage of 700 km provides regional control and has identified numerous lower Tertiary and Cretaceous structural and stratigraphic leads at drilling depths of between 5,000 and 8,200 feet. Antrim continues to work on obtaining the necessary environmental approvals to shoot a 3-D seismic program in the second half of 2011. At least one exploration well is planned for the latter part of 2011.

Antrim's Argentine operations are self-sustaining thereby enabling the Company to evaluate other opportunities in Argentina using the cash flow generated from the Tierra del Fuego properties.

Tanzania

In December 2010, two agreements were signed in Tanzania which are expected to lead to the resumption of exploration activities on the production sharing agreement for the Pemba-Zanzibar exploration licence offshore and onshore Tanzania (the "P-Z PSA"). Antrim holds an option for a 20% carried interest in the P-Z PSA through the pre-drilling phase and an additional 10% option to be exercised up to 180 days following receipt of the initial drilling results. The carried interests would be repaid from future production. The P-Z PSA has been in a state of effective force majeure for several years due to a dispute between the federal government of Tanzania and the provincial government of Zanzibar regarding revenue sharing, and access to the licence area for petroleum exploration activities has been blocked. RAK Gas, the operator, is currently drafting a revised work program for the P-Z PSA for submission to the government of Tanzania. 

Outlook

Antrim expects to have a FDP for the Causeway Field submitted and approved in 2011 for an anticipated production startup in the middle of 2012. Production startup from the Fyne Field is anticipated in the middle of 2013. 

In 2011, Antrim will use its strong financial position to take a leading role in the exploration of the Greater Fyne Area. The drilling program is scheduled to begin in the third quarter with a well drilled to test a Jurassic Fulmar oil prospect. The well is expected to take 55 days to drill and test and cost approximately $30 million.

An additional exploration well in the Greater Fyne Area is expected to be drilled to test an Eocene Tay oil target. The well is expected to take 19 days to drill, at an estimated cost of $12 million.

An East Fyne appraisal well is also scheduled to be drilled on the Fyne Field in the third quarter 2011. This well is intended to de-risk the eastern extent of the Fyne Field and will extend the submission deadline of the FDP for Fyne to June 25, 2012. Antrim together with its partners, continues to work towards identifying the most attractive export route for future oil production from the Fyne Field. Under the terms of the EIA, Antrim's costs up to $50 million are paid by Premier.

In Argentina, Antrim's focus will be on the recently acquired Cerro de Los Leones Exploration Concession (Antrim 50.1% and operator) in the Neuquén Basin. A 3-D seismic program will be shot to support the drilling of at least one exploration well on the licence in 2011. Cash flow from Antrim's expected 1,750 boepd from Tierra del Fuego will be used to support this exploration program. 

In East Africa, Antrim holds an option to participate up to 30% working interest in an exploration program on the Tanzanian P-Z PSA. This region has recently experienced a significant increase in exploration activity, with several major discoveries announced by Anadarko and British Gas. The P-Z PSA has been in an effective force majeure for several years. Antrim expects this impasse could be resolved with the recently announced agreement signed with RAK Gas LLC, a UAE–based exploration and production company with interests elsewhere in Tanzania.

Antrim also considers other global exploration opportunities and views its bilateral strategy of balancing longer term and capital-intensive investments in the UK North Sea with shorter investment cycle on-shore exploration and production opportunities as central to its corporate development. 

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). Visit www.antrimenergy.com for more information. 

Forward-Looking Statements

This MD&A and any documents incorporated by reference herein contain certain forward-looking statements and forward-looking information which are based on Antrim's internal reasonable expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information. Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting", "forecast", "achieve" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements and information. Antrim believes that the expectations reflected in those forward-looking statements and information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements and information included in this MD&A and any documents incorporated by reference herein should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this MD&A or the particular document incorporated by reference herein and Antrim does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws.

In particular, this MD&A and any documents incorporated by reference herein, contain specific forward-looking statements and information pertaining to the quality of and future net revenues from Antrim's reserves of oil, natural gas liquids ("NGL") and natural gas production levels. This MD&A may also contain specific forward-looking statements and information pertaining to commodity prices, foreign currency exchange rates and interest rates, capital expenditure programs and other expenditures, supply and demand for oil, NGL's and natural gas, expectations regarding Antrim's ability to raise capital, to continually add to reserves through acquisitions and development, the schedules and timing of certain projects, Antrim's strategy for growth, Antrim's future operating and financial results, treatment under governmental and other regulatory regimes and tax, environmental and other laws and the start up of production from the Causeway or Fyne Fields in the UK North Sea.

With respect to forward-looking statements contained in this MD&A and any documents incorporated by reference herein, Antrim has made assumptions regarding Antrim's ability to obtain additional drilling rigs and other equipment in a timely manner, obtain regulatory approvals, future oil and natural gas production levels from Antrim's properties and the price obtained from the sales of such production, the level of future capital expenditure required to exploit and develop reserves, the ability of Antrim's partners to meet their commitments as they relate to the Company and more specifically the ability of Valiant to honour its commitments as identified in the CLA and Antrim's reliance on industry partners for the development of some of its properties. Antrim's ability to obtain financing on acceptable terms, the general stability of the economic and political environment in which Antrim operates and the future of oil and natural gas pricing. In respect to these assumptions, the reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

Antrim's actual results could differ materially from those anticipated in these forward-looking statements and information as a result of assumptions proving inaccurate and of both known and unknown risks, including risks associated with the exploration for and development of oil and natural gas reserves, operational risks and liabilities that are not covered by insurance, volatility in market prices for oil, NGLs and natural gas, changes or fluctuations in oil, NGLs and natural gas production levels, changes in foreign currency exchange rates and interest rates, the ability of Antrim to fund its substantial capital requirements and operations, Antrim's ability to finalize the sale of a portion of the Causeway Field to Valiant, Premier exercising its option to acquire a portion of the Fyne Licence, Antrim's ability to obtain access to sub-sea or floating facility including transportation and production storage offshore providers, and Antrim's reliance on industry partners for the development of some of its properties, risks associated with ensuring title to the Company's properties, liabilities and unexpected events inherent in oil and gas operations, including geological, technical, drilling and processing problems, the accuracy of oil and gas reserve estimates and estimated production levels as they are affected by the Antrim's exploration and development drilling and estimated decline rates, in particular the future production rates at the Causeway and Fyne Fields in the UK North Sea and at the Tierra del Fuego concession in Argentina. Additional risks include the ability to effectively compete for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, Antrim's success at acquisition, exploitation and development of reserves, changes in general economic, market and business conditions in Canada, North America, Argentina, South America, the United Kingdom, Europe and worldwide, actions by governmental or regulatory authorities including changes in income tax laws or changes in tax laws, royalty rates and incentive programs relating to the oil and gas industry and more specifically, changes to the capped market price in Argentina, changes in environmental or other legislation applicable to Antrim's operations, and Antrim's ability to comply with current and future environmental and other laws, adverse regulatory rulings, order and decisions and risks associated with the nature of the Common Shares.

Statements relating to "resources" are deemed to be forward-looking statements. The estimates of remaining recoverable prospective resources have been risked for chance of discovery, but have not been risked for chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.

Many of these risk factors, other specific risks, uncertainties and material assumptions are discussed in further detail throughout the MD&A and in Antrim's management discussion and analysis for the year ended December 31, 2010. Readers are specifically referred to the risk factors described in this MD&A under "Risk Factors" and in other documents Antrim files from time to time with securities regulatory authorities. Copies of these documents are available without charge from Antrim or electronically on the internet on Antrim's SEDAR profile at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The calculation of barrels of oil equivalent ("boe") is based on a conversion rate of six thousand cubic feet of natural gas ("mcf") to one barrel of crude oil ("bbl"). Boe's may be misleading, particularly if used in isolation. A 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.

In accordance with AIM guidelines, Mr. Kerry Fulton, P. Eng and Vice President, Operations for Antrim, is the qualified person that has reviewed the technical information contained in this MD&A. Mr. Fulton has over 30 years operating experience in the upstream oil and gas industry.