Antrim Energy Inc. Announces 2004 Second Quarter
Financial and Operational Results
CALGARY, ALBERTA and LONDON, UNITED KINGDOM--(CCNMatthews - Aug.
13, 2004) -
Antrim Energy Inc. ("Antrim")(TSX: AEN)(AIM: AEY) is pleased to
report its financial and operational results for the six month
period ended June 30, 2004.
Highlights for the first six months include:
- Majority of contracts awarded for Antrim's first well offshore
Australia
- Acquired interest in UK licence and discoveries
- 25% increase in oil production
- Increased cash flow from operations
- Strong working capital position
Antrim's activities in the first half of 2004 have closely
followed the theme of this year's annual report, Risk, Leadership
and Discovery. Antrim remains on track to drill its South
Galapagos #1 exploration well on the NorthWest Shelf of Australia
in September 2004. The drilling rig, Transocean's
semi-submersible drilling platform SEDCO 703, is currently
operating on the NorthWest Shelf and could be available to Antrim
as early as the first half of September 2004.
In June 2004, Antrim announced that it had entered into an
agreement to purchase an 18.4% working interest in UK North Sea
Licence P.201 (Block 211/22a, "Osprey Ridge"). Two discovery
wells have been drilled on the licence. This block is situated
between the producing Cormorant and Dunlin oilfields, which to
date have produced over 400 and 380 million barrels of oil
respectively.
Antrim has continued to increase production levels from the
Puesto Guardian Field, Argentina. Oil production in the first
half of 2004 was 442 barrels of oil per day compared to 429
barrels of oil per day in the fourth quarter of 2003 and an
average of 354 barrels of oil per day in the first half of 2003.
An additional 6-well workover program on previously shut-in
wells, initially expected to commence in May 2004, was delayed
due to rig availability and is now expected to commence in August
2004.
Antrim generated cash flow from operations in the six month
period ended June 30, 2004 of $653,924 ($0.02 per share) compared
to a net cash outflow of $121,456 ($0.01 per share) in the
comparable period in 2003. Net income (loss) in the first six
months of 2004 was a loss of $228,637 ($0.01 per share) compared
to a net loss of $1,827,429 ($0.09 per share) in 2003. Net income
increased primarily due to a write-down in the first quarter of
2003 of Antrim's Tunisian assets following the deepening and
subsequent abandonment of Chott Fejaj #3 well in February 2003.
/T/
Financial and Operating Results
-------------------------------------------
Financial Results Three Months Ended Six Months Ended
($000's except per June 30, June 30,
share amounts) 2004 2003 2004 2003
----------------------- ------- ---------- ---------- ----------
Revenue 1,677 1,010 3,275 2,488
Cash flow from
operations 215 (468) 654 (121)
Cash flow from
operations per share 0.01 (0.02) 0.02 (0.01)
Net earnings (loss) (241) (681) (229) (1,808)
Net earnings (loss)
per share (0.01) (0.03) (0.01) (0.09)
Working capital 14,921 7,886 14,921 7,886
Capital expenditures (718) (942) (1,177) (2,996)
Debt Nil Nil Nil Nil
Common shares
outstanding (000's)
End of period 31,403 20,084 31,403 20,084
Weighted average
- basic 31,387 20,062 31,369 20,056
Weighted average
- fully diluted 38,406 20,527 38,389 20,521
Operating Results
Wellhead price ($/BOE) 39.69 33.14 38.65 36.88
Royalties ($/BOE) (6.31) (5.42) (5.48) (4.93)
Operating expenses
($/BOE) (6.87) (14.55) (8.30) (9.37)
-------------------------------------------
Netback ($/BOE) 26.51 13.18 24.87 22.58
-------------------------------------------
Oil and natural gas
production (BOE) 42,244 30,463 84,746 67,463
-------------------------------------------
Oil and natural gas
production (BOE
per day) 464 335 466 373
-------------------------------------------
Certain statements contained in this press release may be considered
as "forward looking". Such "forward looking" statements are subject
to risks and uncertainties that could cause actual results to differ
materially from estimated or implied results.
Updated information about Antrim can be accessed on its website:
www.antrimenergy.com
Antrim Energy Inc.
Consolidated Balance Sheets
As at June 30, 2004 and December 31, 2003 (Unaudited)
----------------------------------------------------------------------
2004 2003
$ $
-------------- -------------
(restated -
note 3)
Assets
Current assets
Cash and cash equivalents 10,271,982 15,136,075
Funds held in escrow 4,318,523 -
Accounts receivable 1,009,077 1,038,046
Inventory and other 558,988 618,793
-------------- -------------
16,158,570 16,792,914
Petroleum and natural gas properties
(notes 2 and 3) 9,515,298 9,003,637
Office equipment - net of accumulated
amortization of $440,620
(2003 - $380,620) 151,581 191,466
-------------- -------------
Total Assets 25,825,449 25,988,017
-------------- -------------
-------------- -------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 775,557 1,447,908
Income taxes payable 461,559 1,245
-------------- -------------
1,237,116 1,449,153
Future income taxes 66,443 66,443
Site restoration provision (note 3) 354,469 337,669
-------------- -------------
1,658,028 1,853,265
Shareholders' Equity
Share capital (note 4) 34,872,942 34,772,554
Contributed surplus (note 4) 282,028 121,110
Deficit (10,987,549) (10,758,912)
-------------- -------------
24,167,421 24,134,752
-------------- -------------
Total Liabilities and
Shareholders' Equity 25,825,449 25,988,017
-------------- -------------
-------------- -------------
Antrim Energy Inc.
Consolidated Statements of Income (Loss) and Deficit
For the Periods Ended June 30, 2004 and 2003 (Unaudited)
----------------------------------------------------------------------
Three Months Six Months
Ended June 30, Ended June 30,
2004 2003 2004 2003
$ $ $ $
------------- ----------- ------------ -----------
(restated (restated
- note 3) - note 3)
Revenue
Oil and gas sales 1,676,537 1,009,655 3,275,202 2,487,893
Royalties (266,656) (165,060) (464,308) (332,315)
------------- ----------- ------------ -----------
1,409,881 844,595 2,810,894 2,155,578
Interest and other
income 51,273 10,839 120,000 85,650
------------- ----------- ------------ -----------
1,461,154 855,434 2,930,894 2,241,228
------------- ----------- ------------ -----------
Expenses
Operating 290,076 443,222 703,376 632,366
General and
administrative 668,970 494,749 1,132,834 812,802
Depletion and
depreciation 357,843 181,501 704,843 398,761
Accretion of asset
retirement
obligations 8,300 7,417 16,800 14,834
Foreign exchange
loss (gain) 29,176 324,675 (15,289) 333,163
Write off of
impaired assets - - - 1,890,242
------------- ----------- ------------ -----------
1,354,365 1,451,564 2,542,564 4,082,168
------------- ----------- ------------ -----------
Income (loss) for
the year before
income taxes 106,789 (596,130) 388,330 (1,840,940)
Income taxes
(recovery)
Current 347,680 89,500 616,967 638,165
Future - (4,200) - (670,915)
------------- ----------- ------------ -----------
347,680 85,300 616,967 (32,750)
------------- ----------- ------------ -----------
Net Income (Loss)
for the Period (240,891) (681,430) (228,637) (1,808,190)
Deficit - Beginning
of Period as
Previously
Reported (10,746,658) (7,787,854) (10,656,042) (7,787,854)
Retroactive
Adjustment
for Change in
Accounting
Policy - 15,590 (102,870) 15,590
------------- ----------- ------------ -----------
Deficit - End
of Period (10,987,549) (8,453,694) (10,987,549) (9,580,454)
------------- ----------- ------------ -----------
------------- ----------- ------------ -----------
Net Income (Loss)
Per Common Share
- Basic (0.01) (0.03) (0.01) (0.09)
Net Income (Loss)
Per Common Share
- Diluted (0.01) (0.03) (0.01) (0.09)
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Antrim Energy Inc.
Stephen Greer
Chairman & CEO
(403) 264-5111
(403) 264-5113 (FAX)
Email: greer@antrimenergy.com
or
Antrim Energy Inc.
Anthony J. Potter
Chief Financial Officer
(403) 264-5111
(403) 264-5113 (FAX)
Email: potter@antrimenergy.com
Website: www.antrimenergy.com
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