CALGARY, ALBERTA--(Marketwire - Aug. 13, 2012) -

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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 six month periods ended June 30, 2012.

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

HIGHLIGHTS:

• Causeway first production on schedule for third quarter 2012
• Completed sale of Antrim Argentina to Crown Point Ventures Ltd.
• Contender exploration well to be drilled in August 2012
• Cyclone exploration well to be drilled in fourth quarter 2012
• Antrim granted extension for the submission of Fyne FDP

First oil production from Causeway remains on track for the third quarter of 2012 with estimated first year average production of 3,000 barrels of oil per day ("bopd") net to Antrim. Subsea pipe laying is complete, and the semi-submersible rig is on location for the 211/23d-17z producing well completion. 

Fionn Field first production continues to be anticipated in the middle of 2013. Antrim and Valiant Petroleum plc ("Valiant") have completed the 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") was submitted in March this year, with approval anticipated in August. Fionn Field production will be combined with the Causeway Field production and transported for processing to the Cormorant North platform.

On May 28, 2012, Antrim completed the sale of Antrim Argentina S.A., to Crown Point Ventures Ltd. ("Crown Point"), an Argentine-focused oil and gas company listed on the TSX Venture Exchange, pursuant to a plan of arrangement (the "Arrangement"). Under the terms of the Arrangement, Antrim received Cdn $9.2 million in cash (net of certain adjustments) and 35,761,290 common shares of Crown Point ("Crown Point Shares"), which were distributed to Antrim shareholders on June 7, 2012, by way of a return of capital. As a result of the completed sale, Antrim's Argentina operations have been accounted for as discontinued operations. Comparative figures have been reclassified to conform with this presentation.

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 to start in August 2012. Under the terms of the farm-out agreement with TAQA, drilling costs will be completely funded by TAQA. 

Antrim and its joint venture partner 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 to start in October 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. 

With the UK Department of Energy and Climate Change ("DECC") approval, Antrim acquired the working interests and reserves of Premier and First Oil Expro Limited ("First Oil") at no cost and regained operatorship in UK Central North Sea Licence P077 Block 21/28a (the "Fyne Licence") in June 2012. Antrim's increased ownership in Fyne, on execution by all parties of the final completion documents, allows Antrim sole control over development; however, increased ownership could increase the risk that the development of the Fyne Licence will not proceed as expected. 

In June 2012 DECC notified Antrim that it had extended the deadline for approval of an FDP for the Fyne Licence from June 25, 2012 to January 11, 2013. Approval of the FDP by DECC is required for Antrim to proceed with the development. First oil production by November 2014 is a condition of the three year extension to the licence granted by DECC in November 2011. If an FDP is not submitted ready for approval by January 11, 2013, the Fyne Licence could be revoked. 

Antrim continues to work on the design of the production facility for Fyne and surrounding fields in the Greater Fyne Area. Antrim is advancing negotiations on an existing production facility in order to fast track the development to meet the January 11, 2013 deadline for an FDP submission. In parallel to this work, Antrim is seeking joint venture partners to participate in appraisal and development of the Greater Fyne Area discoveries.

Financial and Operating Results from Continuing Operations (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.

Overview of Continuing Operations

United Kingdom

Causeway Licences

First oil production from Causeway remains on track for the third quarter of 2012 with estimated first year average production of 3,000 bopd net to Antrim. The Causeway Field development plan includes one production well and a water injection well to be completed in early 2013. Subsea pipe laying is complete, and the semi-submersible rig is on location for the 211/23d-17z producing well completion. 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 $29.5 million. 

Antrim and Valiant have completed the early installation of subsea facilities for the development of the Fionn Field. A development plan and budget for the Fionn Field was agreed to by the joint venture partners. An FDP for the Fionn Field was submitted in March and DECC approval is currently anticipated in August. 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 Fionn pre-investment cost plus interest.

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. Drilling is anticipated to start in October 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 August 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 top Jurassic Brent sequence of sandstones at a depth of approximately 11,000 feet true vertical depth and approximately two kilometres east of the Cormorant North Field. If successful, completion costs will be paid out of future production.

Fyne Licence

In June 2012, Antrim received approval from DECC to acquire a 39.9% working interest, associated reserves, and operatorship 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, on execution by all parties of the final completion documents, allows Antrim sole control over development; however, increased ownership could increase the risk that the development of Fyne will not proceed as expected. The transfer is expected to be formally completed within the next few weeks. 

Antrim is currently working on the development plan 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 ready for approval by the January 11, 2013 extended deadline. Approval of the FDP by DECC is required for Antrim to proceed with the development and first oil production by November 2014. If an FDP is not submitted ready for approval by January 11, 2013, the Fyne Licence could be revoked. 

If an FDP is submitted to DECC, the proposed production facility is likely to be an existing production facility to fast track the development to meet the January 11, 2013 deadline for an FDP approval. 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. In parallel to this work, Antrim is seeking joint venture partners to participate in appraisal and development of the Greater Fyne Area discoveries. 

During the first quarter of 2012, 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 Joint Operating Agreement ("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% in the first quarter of 2012 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. 

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 licenced seismic and will reprocess and interpret the data into early 2013.

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 sale of the Argentina business, the Company's Argentine segment has been accounted for as discontinued operations. Comparative figures have been reclassified to conform with this presentation. Since the sale of Argentina operations was finalized on May 28, 2012, the financial results for the second quarter of 2012 reflect only Antrim's ownership to that date. 

Argentina generated oil and gas revenue, net of royalties, of $2.2 million and $4.8 million for the three and six month periods ended June 30, 2012 which decreased from $2.7 million and $5.1 from the respective comparative periods in 2011. Revenue decreased as a result of a shorter production period and lower daily oil and gas production volumes, partially offset by higher oil and gas prices. Production in Argentina decreased to 1,433 barrels of oil equivalent per day ("boepd") for the second quarter of 2012 compared to 1,553 boepd for the same period in 2011 due to a natural decline and temporary oil storage problems.

Antrim's average gas price for the second quarter of 2012 was $2.38 per thousand cubic feet ("mcf") compared to $2.22 per mcf for the same period in 2011, a 7% increase. In the second quarter of 2012, oil prices averaged $70.09 per barrel compared to $58.42 per barrel for the same period in 2011, a 20% increase. 

Antrim sold 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 20%, which was retained by Antrim due to favorable tax laws pertaining to Tierra del Fuego. VAT of $0.9 million for the six months ended June 30, 2012 (2011 - $1.0 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 $13.44 (2011 - $9.35) per boe and $11.42 (2011 - $9.39) for the three and six month periods ended June 30, 2012. The increase in the 2012 field netbacks, as compared to 2011, was due to higher product prices partially offset by higher operating expenses, royalties and export taxes.

Corporate

At the Annual General and Special Meeting of Shareholders, Mr. Erik Mielke was elected as a Non-Executive Director of Antrim. We are pleased to welcome Erik to the Board and look forward to his guidance based on his extensive international oil and gas experience. 

In connection with the recently completed sale of Antrim's Argentina operations, Dr. Brian Moss resigned his position as a Board member and as Executive, Vice President, Latin America. Brian was instrumental in adding significant value to the Antrim properties in Argentina and we thank him for his considerable contributions. 

Outlook

Antrim's divestment 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 with estimated first year average oil production of 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 fourth quarter of 2012 to test the Cyclone prospect. In addition, Antrim is participating in the drilling of an exploration well in the Contender prospect in the Northern North Sea which will spud in August 2012.

The withdrawal of Premier and First Oil from the Fyne Licence has prompted a review of Antrim's development plan for this property. 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 licence 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. Antrim has licenced seismic and will reprocess and interpret it in early 2013. 

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 Antrim's plans for the developing of its Fyne property, including anticipated timing thereof, future drilling plans with respect to Contender and Cyclone, anticipated first production date and production rates for Causeway, anticipated first production date and development plans for Fionn, 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. 

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 Fyne FDP), 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, unanticipated delays with respect to the development of Antrim's properties, 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 (including the development of its Fyne property), 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. 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, 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 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.

Antrim Energy Inc.

Consolidated Balance Sheet

As at June 30, 2012 and December 31, 2011 (unaudited)

(Amounts in US$ thousands)

Antrim Energy Inc.

Consolidated Statement of Comprehensive (Loss) Income

For the three and six months ended June 30, 2012 and 2011 (unaudited)

(Amounts in US$ thousands, except per share data)

Antrim Energy Inc.

Consolidated Statement of Cash Flows

For the three and six months ended June 30, 2012 and 2011 (unaudited)

(Amounts in US$ thousands)

Antrim Energy Inc.

Consolidated Statement of Changes in Equity

For the six months ended June 30, 2012 and 2011 (unaudited)

(Amounts in US$ thousands)