CALGARY, ALBERTA--(Marketwire - Nov. 11, 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 and nine month periods ended September 30, 2011.

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

HIGHLIGHTS:

• Field Development Plan submitted for Causeway
• Premier farms-in on Erne Prospect
• TAQA farms-in on Contender Prospect
• Average oil and gas prices in Argentina increased 24% and 23% respectively
• Current unrestricted cash position of $48.3 million and no bank debt

Oil and gas revenue, net of royalties, was $7.5 million for the nine months ended September 30, 2011 compared to $8.5 million for the same period in 2010. Net revenue decreased as a result of lower oil and gas sales volumes partially offset by higher oil and gas prices. Antrim generated cash flow from operations of $1.1 million for the nine months ended September 30, 2011 compared to $1.5 million for the same period in 2010.

In the first nine months of 2011, average production in Argentina was 1,579 barrels of oil equivalent per day ("boepd") compared to 1,792 boepd in the same period in 2010. The reduced production is attributable to a natural decline combined with ongoing gas plant maintenance and temporary oil storage problems that curtailed production for periods of time during the second quarter.

Antrim's average gas price for the third quarter of 2011 was $2.25 per mcf compared to $1.83 per mcf for the same period in 2010, a 23% increase. For the third quarter, oil prices averaged $61.87 per barrel compared to $49.98 per barrel for the same period in 2010, a 24% increase.

Antrim announced on August 31, 2011 the submission of the Field Development Plan ("FDP") to the UK Department of Energy and Climate Change ("DECC") for the Causeway Field. DECC approval of the FDP is anticipated in the fourth quarter of 2011. The FDP includes a production well and a water injection well in the East and Far East fault panels, with first oil production anticipated in the middle of 2012.

In addition, Antrim finalized the sale of a 30% interest in the Causeway Field, along with the pro rata share of the reserves and tax losses, to Valiant Petroleum plc ("Valiant") on October 7, 2011. In return, Antrim will receive up to $21.75 million carried contribution towards its remaining 35.5% working interest share of the development costs of the Causeway Field. Antrim recorded an impairment expense on exploration and evaluation assets of $35.6 million in the third quarter related to this sale.

Antrim signed a Heads of Agreement ("HOA") to farm out a portion of its Erne Prospect located in the Greater Fyne Area in the Central North Sea to Premier Oil UK Limited ("Premier"). Premier will earn a 50% working interest in Antrim's 100% owned licence P1875 by funding a promoted share of the costs to drill a well on the Erne Prospect on Block 21/29d. The well will commence drilling in the next few days.

Antrim signed a farm-out agreement with TAQA Bratani Limited ("TAQA") related to P201 Block 211/22a North West Area. TAQA has agreed to drill an exploration well in a prospect ("Contender") in the southern area (the "Contender sub-area") of the licence to earn an interest in the licence. After satisfaction of the drilling requirements by TAQA, Antrim's remaining interest will be 8.4% in the Contender sub-area of the block and 13.65% in the northern area (the "Kerloch sub-area").

Financial and Operating Results (unaudited)

(1) Cash flow from operations and cash flow from operations per share are Non-IFRS Measures. Refer to "Non-IFRS Measures" in Management's Discussion and Analysis.

(2) The barrels of oil equivalent ("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.

OVERVIEW OF OPERATIONS

United Kingdom

Fyne Field

Premier elected to farm-in and drill the East Fyne well in the Fyne Field in P077 Block 21/28a (the "Fyne Licence"). The appraisal well is designed to de-risk the eastern extent of the Fyne Field and is expected to be drilled starting in early December 2011. Antrim's share of drilling, completion and/or abandonment will be covered by Premier's carried contribution of up to $50 million under the Earn-In Agreement ("EIA"). 

DECC has agreed to a three year extension on the condition that a FDP is submitted by December 25, 2011, or by June 25, 2012 if the East Fyne appraisal well is spud on the licence prior to February 25, 2012. 

Antrim is continuing to work with Premier on the identification of export routes. The currently preferred production system will handle approximately 20,000 barrels of oil per day ("bopd"), with potential capacity add-ons to handle additional volume from satellite fields. First production is anticipated between the middle of 2013 and the middle of 2014, depending on the export route adopted. 

Greater Fyne Area

In addition to the Fyne development, Antrim has identified several high priority drilling prospects on Antrim licences within the Greater Fyne Area. The drilling targets chosen for the 2011 exploration program are the Erne Tay Prospect in P1875 Block 21/29d at 5,600 feet drilling depth, and the Carra Eocene Tay Prospect in P1563 Block 21/28b at 5,000 feet drilling depth. The estimated duration for the drilling of the two wells is 50 days, not including testing. The Erne well will commence drilling in the next few days. Once finished, the drilling rig will be moved to the Carra location (Antrim 100%).

Antrim signed a HOA with Premier to farm-out a 50% working interest in licence P1875 (the "Erne Prospect"). Premier retains a right to participate up to 50% in future Greater Fyne Area exploration programs. 

Causeway Field

Antrim finalized the sale of a 30% interest in the Causeway Field, along with the pro rata share of the reserves and tax losses, to Valiant on October 7, 2011. In return, Antrim will receive up to $21.75 million carried contribution towards its remaining 35.5% working interest share of the development costs of the Causeway Field.

The FDP has been submitted to DECC for the Causeway Field and approval is anticipated in the fourth quarter of 2011.

The Causeway FDP includes a production well and a water injection well in the East and Far East fault panels and will utilize existing wells in the field drilled during the appraisal phase. The production well will be completed with dual electrical submersible pumps and first oil is anticipated in the middle of 2012. Hydrocarbons will be transported to and processed at the Cormorant North production platform operated by TAQA before being exported to the Sullom Voe terminal for sale. Development costs net to Antrim are estimated at $32 million, net of the carried contribution received from the sale of a 30% interest to Valiant. 

Commitments are now in place for all long lead equipment and the operator has awarded a letter of intent for the main subsea installation contract. The option to include the Central panel in the first phase of development is still under review.

Kerloch Field

Antrim signed a farm-out agreement with TAQA related to P201 Block 211/22a North West Area (Antrim 21%) whereby TAQA has agreed to drill an exploration well to earn an interest in the licence.
TAQA assumed operatorship and will drill an exploration well on the Contender prospect in the southern area of the block from the Cormorant North platform. The well will target the Jurassic Brent sequence of sandstones at a projected drilling depth of 16,900 feet, less than two kilometres east of the Cormorant North Field. The well is expected to spud in the first half of 2012 and drilling will be funded by TAQA.

After satisfaction of the drilling requirements, TAQA will earn 60% interest in the southern area of the Contender sub-area and 35% interest in the Kerloch sub-area. Antrim's remaining interests will be 8.4% in the Contender sub-area and 13.65% in the Kerloch sub-area.

Block 211/22a North West Area is located approximately five kilometres west of the Causeway development. In 2007, Antrim and partners drilled the Kerloch discovery well 211/22a-10 that penetrated an oil column approximately 116 feet thick in the Jurassic Ness Formation. 

Argentina

During the third quarter, two wells on the Los Flamencos gas pool were re-entered and fracture stimulated. LF-1023, drilled in 2010 and initially completed with a flow rate of 0.4 million cubic feet per day ("mmcfd") of gas at low pressures, was re-entered and fracture stimulated. Production in September averaged 3.3 mmcfd of gas plus 33 bopd.

The LF-1010 well, drilled in 2008 and producing gas at a rate of approximately 1 mmcfd, was also successfully fracture stimulated and production in September averaged 1.5 mmcfd of gas plus 47 bopd.

The addition of LF-1023 and improved flow rates from LF-1010 have helped to bolster Antrim's daily production which is expected to average approximately 1,580 barrels of oil equivalent per day ("boepd") in 2011.

As a result of these successful fracture stimulation operations, Antrim and its partners are evaluating other Los Flamencos wells as candidates for fracture stimulation. Several suitable candidates have been identified and further analysis to high grade is now underway with the objective to fracture stimulate five wells beginning in the fourth quarter.

Antrim's average gas price for the third quarter of 2011 was $2.25 per mcf compared to $1.83 per mcf for the same period in 2010, a 23% increase. In the third quarter of 2011, oil prices averaged $61.87 per barrel compared to $49.98 per barrel for the same period in 2010, a 24% increase. 

Antrim sells all of its oil production and approximately 80% 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 $1.5 million (2010 - $1.6 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 $8.37 (2010 - $11.97) per boe and $9.07 (2010 - $9.52) for the three and nine month periods ended September 30, 2011. The decrease in the 2011 field netbacks, as compared to 2010, was due to higher operating costs, royalties and export taxes.

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 continues to await 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. 

Antrim and its partners in the Tierra del Fuego Concession are currently negotiating a ten year extension to the licences which expire in November 2016. Antrim expects to finalize terms later in 2011. Terms of the extension will include an upfront cash payment to the Province of Tierra del Fuego, an increase in royalties and a multi-well drilling commitment. 

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 and now expects to have approval to shoot seismic in early 2012 with drilling now scheduled to start later in 2012.

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.

Ireland

On October 18, 2011, Antrim announced that it had been awarded a Frontier Licence Option by the Department of Communications, Energy and Natural Resources of Ireland, under the Irish 2011 Atlantic Margin Licensing Round. The Licence option area covers Blocks 44/4, 44/5 (part), 44/9, 44/10, 44/14, 44/15, an area of approximately 1,409 square km located in the Porcupine Basin situated approximately 110 km off the southwest coast of Ireland. The option allows Antrim two years to qualify the blocks for a full Exploration Licence.

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 seeking approval from the government of Tanzania for a revised work program. 

Outlook

Antrim expects to have a FDP for the Causeway Field sanctioned by DECC in the fourth quarter of 2011 for an anticipated production startup in the middle of 2012. Production startup from the Fyne Field is anticipated between the middle of 2013 and middle of 2014, depending on the export route adopted. 

In the fourth quarter of 2011, Antrim will take a leading role in the exploration of the Greater Fyne Area. The drilling program began in early November with a well being drilled to test the Erne Tay Prospect. The well is expected to take 22 days to drill at an estimated cost to Antrim of $4.6 million after the farm-in by Premier. The Carra prospect will be drilled subsequent to the Erne prospect. It is expected to take 23 days to drill at an estimated cost to Antrim of $14 million.

An East Fyne appraisal well is also scheduled to be drilled on the Fyne Field in early December 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 expects to fracture-stimulate an additional five wells beginning in the fourth quarter of 2011. In addition, Antrim will focus 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 drilling, both scheduled for 2012. Cash flow from Antrim's expected 1,580 boepd from Tierra del Fuego will be used to support these capital expenditures.

Antrim is planning to commence studies on the blocks covered by the Frontier Licence Options awarded to the Company in the Irish 2011 Atlantic Margin Licensing Round. 

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 startup 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 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 such as the risk that drilling operations may not be successful, 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, Premier exercising its option to acquire a portion of Antrim's interests in the Greater Fyne Area, 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.

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.