CALGARY, ALBERTA--(Marketwire - May 15, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

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, 2012.

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

HIGHLIGHTS:

• Agreement to sell Antrim Argentina to Crown Point Ventures Ltd.
• Causeway first production on schedule for third quarter 2012
• Antrim approves drilling of the Cyclone exploration well in second half of 2012
• Antrim to acquire Fyne Working Interests, Reserves and Operatorship (subject to DECC) and incurs Impairment charge

Antrim entered into an arrangement agreement (the "Arrangement Agreement") on March 23, 2012 to sell all of its interest in its wholly owned subsidiary, Antrim Argentina S.A., to Crown Point Ventures Ltd. ("Crown Point"), an Argentine-focused oil and gas company (the "Arrangement") listed on the TSX Venture exchange. The consideration consists of approximately Cdn$10.3 million in cash (subject to certain adjustments) and 35,761,307 common shares of Crown Point ("Crown Point Shares") which have a combined estimated value of Cdn$32.8 million based on Crown Point's closing share price of Cdn $0.63 on May 14, 2012. The actual consideration will be based on the closing price of the Crown Point Shares on the closing date, which is expected to be on or about May 28, 2012. 

Pursuant to the terms of the Arrangement, Antrim will distribute the Crown Point Shares to its shareholders by way of a reduction of stated capital. The Arrangement remains subject to certain conditions and regulatory approvals, including the approval of holders of at least two-thirds of the Antrim votes cast at a shareholders meeting to be held on May 24, 2012.

Antrim believes this arrangement affords shareholders a number of advantages including the opportunity for Antrim shareholders to continue to realize value for the Antrim Argentina assets through ownership of Crown Point shares or obtain liquidity, Antrim receiving a portion of the consideration in cash and, the opportunity for Antrim to focus on exploring and developing its assets in the UK and elsewhere.

As a result of the decision to divest, Antrim's Argentina segment assets and liabilities have been reclassified as held for sale and the operations have been accounted for as discontinued operations. Comparative figures have been reclassified to conform with this presentation (see Note 3 of the interim consolidated financial statements).

First oil production from Causeway remains on track for the third quarter of 2012 at approximately 3,000 barrels of oil per day ("bopd") net to Antrim. Fionn Field first production is anticipated in the middle of 2013. In December 2011, DECC assigned separate field designations to the Fionn Field and the Causeway Field, which allows for separate Small Field Allowance tax credits to be applied for each field. 

Antrim and Valiant Petroleum plc ("Valiant") have agreed to proceed with the early installation of subsea facilities for the development of the Fionn Field in the UK Central North Sea Licence P201 South East Area Block 211/22a. A Field Development Plan ("FDP") for the Fionn Field was submitted to DECC for approval in March 2012. Fionn Field production will be combined with the Causeway Field production and transported for processing to the Cormorant North platform.

The joint venture partners have approved an exploration well on the Cyclone prospect, Licence P1784 Block 21/7b, and have signed a contract for use of a semi-submersible drilling rig, with drilling expected in the second half of 2012. The block contains the "Cyclone" and the "Typhoon" Tertiary Cromarty prospects at approximately 5,000 and 5,600 feet respectively. The licence was acquired jointly with Premier Oil UK Limited ("Premier") (70%, operator) with a firm well commitment. 

TAQA Britani Limited ("TAQA") is proceeding with plans to drill an exploration well on the Contender prospect, Block 211/22a Contender Area (Antrim working interest 8.4%), with drilling expected in June 2012. Under the terms of the farm-out agreement with TAQA, drilling costs will be completely funded by TAQA. 

In February 2012, Premier drilled the East Fyne appraisal well. The thickness of the oil bearing sand was at the lower end of Antrim's estimate. The well was subsequently plugged and abandoned. Antrim's share of drilling and abandonment costs for the East Fyne well was covered by Premier's carried contribution. Antrim is incorporating the results of the East Fyne well into its modeling of the reservoir. Although not finalized, Antrim's expectations are that gross Fyne Field reserves are likely to decrease by approximately 36% due to a reduction on oil in place and a lower anticipated recovery factor.

Antrim has announced that, under the terms of the Joint Operating Agreement (the "JOA") in respect of Fyne, Antrim will acquire the remaining working interests and reserves and anticipates regaining operatorship in UK Central North Sea Licence P077 Block 21/28a (the "Fyne Licence"). The change in working interest and operatorship is subject to approval from the UK Department of Energy and Climate Charge ("DECC") which may be withheld. 

If approved, Antrim will acquire a 39.9% working interest and associated reserves from Premier and an additional 25% working interest and associated reserves from First Oil Expro Limited ("First Oil") at no cost. This follows notice from both Premier and First Oil of their intention to withdraw from the Fyne Licence. Antrim's increased ownership in Fyne will allow Antrim sole control over development; however, increased ownership could increase the risk that the development of the Fyne Licence will not proceed as expected. 

Antrim is currently evaluating its options with respect to the Fyne Licence. If Antrim is to continue with the Fyne Licence an FDP for the Fyne Field would need to be submitted by June 25, 2012, which is a condition to the three year extension to the licence granted by the DECC in November 2011. Approval of the FDP by DECC is required for Antrim to proceed with the development and first oil production by November 2014. If the FDP is not submitted by June 25, 2012, or an extension is not obtained from DECC, the Fyne Licence could be revoked. 

In accordance with International Financial Reporting Standards ("IFRS"), management performed an impairment assessment on the carrying value of the Fyne Licence cash-generating unit ("CGU") as there were indications that the recoverable value may be impaired. The facts and circumstances considered included the abandonment of the East Fyne appraisal well, the expectation that the gross Fyne Field reserves would likely decline by approximately 36%, the withdrawal of Premier and First Oil from the JOA, the risk that Antrim may not obtain approval of an FDP from DECC, the risk of Antrim not finding partners, and the challenge in securing funding for the project in a difficult market. In light of these events, management determined that the carrying value of the Fyne Licence CGU was impaired. The carrying value of the Fyne Licence was written down 100% to a $nil value with the Company incurring a $53.1 million impairment charge. If Antrim is able to proceed with developing the Fyne Licence, the impairment charge may be reversed. 

Financial and Operating Results from Continuing Operations (unaudited)

Overview of Continuing Operations

United Kingdom

Causeway Licences

First oil production from Causeway remains on track for the third quarter of 2012 at approximately 3,000 barrels of oil per day ("bopd") net to Antrim. The Causeway Field development plan includes a production well and a water injection well. 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. Antrim's remaining development costs for its 35.5% working interest are estimated at $31.5 million, net of the carried contribution receivable from the sale of a 30% interest to Valiant. 

Valiant awarded a contract for engineering, procurement, installation and commissioning of rigid and flexible pipelines, subsea equipment and umbilicals. Tree assembly and testing is in progress, with the majority of the controls equipment being complete and also undergoing testing. Preparations on the Cormorant North platform have been hampered by weather delays. Subsea pipe laying was completed in April, and a semi-submersible rig has been contracted for the producing well completion, scheduled to begin in the middle of June.

In December 2011, DECC assigned separate field designations to the Fionn Field (previously referred to as the Central Causeway fault block) in UK Northern North Sea Licence P1383 Block 211/23d and the Causeway Field (previously referred to as the East Causeway and Far East Causeway fault blocks) in UK Northern North Sea Licence P201 South East Area Block 211/22a. This allows for separate Small Field Allowance tax credits to be applied for each field. 

Antrim and Valiant have agreed to proceed with the early installation of subsea facilities for the development of the Fionn Field. Coincident with this agreement, a development plan and budget for the Fionn Field was agreed to by the joint venture partners. Valiant subsequently prepared an FDP for the Fionn Field, which was submitted to DECC for approval in March 2012. Fionn Field production will be combined with the Causeway Field production and transported for processing to the Cormorant North platform. First oil production from the Fionn Field is anticipated in the middle of 2013. Antrim's share of the development costs for the Fionn Field, including the pre-investment costs, is estimated to be approximately $22 million. 

Under the terms of the Fionn Agreement, Antrim has the option for three months following first oil production from the Causeway Field to opt out of participating in the Fionn Field development, or to confirm its participation by paying its 35.5% working interest share of the pre-investment cost plus interest in respect to the financing. 

Cyclone Prospect

Licence P1784 Block 21/7b (Antrim 30%) is located in the Central North Sea, north of the Greater Fyne Area. The block contains the "Cyclone" and the "Typhoon" Tertiary Cromarty prospects at approximately 5,000 and 5,600 feet respectively. The licence was acquired jointly with Premier (70%, operator) with a firm well commitment. The joint venture partners have approved an exploration well on the Cyclone prospect and signed a contract for use of a semi-submersible drilling rig to drill the well. A site survey proceeded in late April 2012, with drilling anticipated in the second half of 2012. 

Kerloch Licences

TAQA is proceeding with plans to drill an exploration well on the Contender prospect in Licence P201 Block 211/22a Contender Area (Antrim working interest 8.4%), in June 2012. Under the terms of the farm-out agreement with TAQA, drilling costs will be completely funded by TAQA. The well will be drilled from the TAQA-operated Cormorant North platform, targeting the Jurassic Brent sequence of sandstones at a depth of approximately 12,000 feet true vertical depth and approximately two kilometres east of the Cormorant North Field.

Fyne Licence

In February 2012, Premier (as operator) drilled the East Fyne appraisal well in the Fyne Field. The thickness of the oil bearing sand was at the lower end of Antrim's estimate. The well was plugged and abandoned. Antrim's share of drilling and abandonment costs was covered by Premier's carried contribution under the Earn-In Agreement ("EIA"). Antrim is incorporating the results of the East Fyne well into its modeling of the reservoir. Although not finalized, Antrim's expectations are that gross Fyne Field reserves are likely to decline by approximately 36%. 

Antrim has announced that, under the terms of the JOA in respect of Fyne, Antrim will acquire the remaining working interests and reserves and anticipates regaining operatorship in the Fyne Licence. The change in working interests and operatorship is subject to approval from DECC. DECC is expected to make this determination in the coming weeks.

If approved, Antrim will acquire a 39.9% working interest and associated reserves from Premier and an additional 25% working interest and associated reserves from First Oil at no cost. This follows notice from both Premier and First Oil of their intention to withdraw from the Fyne Licence. Antrim's increased ownership in Fyne will allow Antrim sole control over development; however, increased ownership could increase the risk that the development of Fyne will not proceed as expected. 

Antrim is currently evaluating its options with respect to the Fyne Licence. If Antrim is to continue with the Fyne Licence an FDP for the Fyne Field will need to be submitted by June 25, 2012, which is a condition to the three year extension to the licence granted by the DECC in November 2011. Approval of the FDP by DECC is required for Antrim to proceed with the development and first oil production by November 2014. If the FDP is not submitted by June 25, 2012, or an extension obtained from DECC, the Fyne Licence could be revoked. 

If an FDP is submitted to DECC, the proposed production facility is likely to use a small floating mini-Spar facility ("Spar"). The Fyne development would be phased to minimize initial capital expenditures and allow early production revenue to fund additional development, including water injection and additional producing wells. The first phase of the Fyne development would include the re-completion of the existing wells in Northwest and Central Fyne for production. If approved, fabrication of the Spar would begin in 2013.

In accordance with IFRS, management performed an impairment assessment on the carrying value of the Fyne Licence CGU as there were indications that the recoverable value may be impaired. The facts and circumstances considered included the abandonment of the East Fyne appraisal well, the expectation that the gross Fyne Field reserves would likely decline by approximately 36%, the withdrawal of Premier and First Oil from the JOA, the risk that Antrim may not obtain approval of an FDP from DECC, the risk of Antrim not finding partners, and the challenge in securing funding for the project in a difficult market. In light of these events, management determined that the carrying value of the Fyne Licence CGU was impaired. The carrying value of the Fyne Licence was written down 100% to a $nil value with the Company incurring a $53.1 million impairment charge. If Antrim is able to proceed with developing the Fyne Licence, the impairment charge may be reversed. 

Greater Fyne Area

In the fourth quarter of 2011, Antrim completed the drilling of the Erne discovery well 21/29d-11 and the sidetrack well 21/29d-11Z (Antrim 50%) in UK Central North Sea Licence P1875 Block 21/29d. Post-well analysis by Antrim's independent reserve evaluation engineers did not result in any reserves being assigned at this time. The Erne pilot and sidetrack wells have high-graded and de-risked other drilling prospects in the Upper Tay Formation near Erne and along the same trend on Antrim-interest licences.

Ireland

In 2011, Antrim was 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 approximately 110 km off the southwest coast of Ireland. The option allows Antrim two years to qualify the blocks for a full Exploration Licence. Antrim has committed to a seismic work program of $0.5 million.

Tanzania

Antrim holds an option to acquire a 20% interest in the production sharing agreement for the Pemba-Zanzibar exploration licence offshore and onshore Tanzania (the "P-Z PSA") following the pre-drilling (seismic) phase and an additional 10% interest to be exercised up to 180 days following receipt of the initial drilling results. Carried costs associated with the interests would be repaid from future production. RAK Gas, the operator, has submitted a proposal for a revised work programme to the federal government of Tanzania. Environmental impact assessment work has commenced, with seismic operations expected to proceed during 2012. 

Overview of Discontinued Operations

Argentina

With the strategic decision to sell its Argentina business, the Company's Argentina operations have been accounted for as discontinued operations. Comparative figures have been reclassified to conform with this presentation. See Note 3 of the interim consolidated financial statements.

Argentina generated oil and gas revenue, net of royalties, of $2.6 million for the three month period ended March 31, 2012 which increased from $2.4 million in 2011. Revenue increased as a result of higher oil and gas prices received offset by lower oil and gas production. Production in Argentina decreased to 1,424 barrels of oil equivalent per day ("boepd") for the first quarter of 2012 from 1,640 boepd in 2011 due to a natural decline and temporary oil storage problems.

Antrim's average gas price for the first quarter of 2012 was $2.44 per thousand cubic feet ("mcf") compared to $2.08 per mcf for the same period in 2011, a 17% increase. In the first quarter of 2012, oil prices averaged $68.72 per barrel compared to $55.00 per barrel for the same period in 2011, a 25% increase. 

Antrim sells all of its oil production and approximately 76% 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 favorable tax laws pertaining to Tierra del Fuego. VAT of $0.5 million (2011 - $0.5 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 $9.97 (2011 - $8.96) per boe for the three month period ended March 31, 2012. The increase in the 2012 field netbacks, as compared to 2011, was due to higher product prices partially offset by higher production and operating expenses, royalties and export taxes.

In February 2012, the Company's application for "Gas Plus" pricing incentives for new gas produced from the wells drilled in 2010 was approved by the government. This approval will permit Antrim to sell a portion of its gas in the higher-priced industrial gas plus market on the mainland. 

Antrim and its partners in the Tierra del Fuego Concession are finalizing a ten year extension to the licences which currently expire in November 2016. Terms of the extension will include two upfront cash payments to the Province of Tierra del Fuego of $3.0 million (gross), an increase in royalties to 15% and a multi-well drilling commitment. The terms have been agreed to by the joint venture and government negotiating teams, and forwarded to the Governor of Tierra del Fuego for signature and subsequent approval by the Legislature of the province of Tierra del Fuego, which is expected in the second quarter of 2012. 

The Tierra del Fuego joint venture intends to complete a five well fracture program designed to improve deliverability from the eastern region of the Los Flamencos gas pool. After confirmation of the licence extensions of the Tierra del Fuego Concessions, a six well development drilling program is planned. The six well program will focus on increasing proven reserves and production from the Los Flamencos gas pool.

In Cerro de Los Leones, 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 by the middle of 2012 with drilling now scheduled to start later in 2012.

Outlook

Antrim's decision to divest of its oil and gas interests in Argentina will allow the Company to focus on opportunities in the UK North Sea and elsewhere. Antrim remains on track for first oil production of approximately 3,000 bopd (net to Antrim), from the Causeway Field in the third quarter of 2012, followed by the Fionn Field in 2013. 

A well will be drilled in the second half of 2012 to test the Cyclone prospect. In addition, Antrim will participate in the drilling of an exploration well in the Contender prospect in the Northern North Sea in the second quarter of 2012.

The withdrawal of Premier and First Oil from the Fyne License has prompted a review of Antrim's development plan for this property to determine the feasibility of advancing the Spar concept to the point where it can be incorporated into an FDP that is acceptable to DECC. The review includes an evaluation of the costs and time requirements for the engineering design process, fabrication, deployment and hook up, the ability to attract additional partners into the license including a recognized production operator, the availability of third party financing to fund the company's share of the project costs, and probability of delivering first production before the November 2014 extension deadline.

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

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 and Cautionary 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 the Arrangement with Crown Point Ventures Ltd., including the anticipated timing thereof, Antrim's plans for the developing of its Fyne property, including anticipated timing thereof and receipt of necessary DECC approvals to changes of working interest and operatorship, future drilling plans with respect to Causeway, Contender and Cyclone, 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 (including in respect of the Arrangement and the Fyne Licence), 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 risk that DECC does not approve the changes in working interest or operatorship to the Fyne Licence, the ability of Antrim to fund its substantial capital requirements and operations (including the development of its Fyne property), risks associated with the Arrangement, including the risk that the transaction is not completed, 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, Fionn and Fyne Fields in the UK North Sea and at the Tierra del Fuego and Cerro de Los Leones concessions in Argentina, which are considered discontinued operations. 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, 2011. 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.