Canada: Antrim Releases 2013 First Quarter Financial and Operational Results

Antrim Energy Inc. (“Antrim” or “the Company”), an international oil and gas exploration and production company, reported its financial and operational results for the three month period ended March 31, 2013.

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

HIGHLIGHTS:

– Causeway production rates average gross 3,336 bbls/day (net 976 bbls/day) for first quarter of 2013 – gross 3,885 bbls/day (net 1,136 bbls/day), excluding 15 days of interrupted production due to platform shutdowns

– Oil revenues of $12.0 million and cash flow from operations of $6.6 million

– Antrim raises $30 million in Payment Swap transaction including a forward sale of 657,350 barrels of oil

– Cormorant East commenced production in January

– Farm out of the Ireland Skellig Block to Kosmos Energy Ltd.

Overview of Continuing Operations

Causeway Licences

Licence P201 Block 211/22a South East Area and P1383 Block 211/23d, Antrim 35.5%

The Causeway Licences include the Causeway Field and the West Causeway area. Production from the Causeway Field averaged 3,336 gross barrels of oil per day (“bopd”) (Antrim net 976 bopd) in the first quarter of 2013 compared to nil in 2012, after production commenced in November 2012. During the quarter production was interrupted for eight days due to a shut down on the Cormorant Alpha platform and an additional seven days due to shut downs on the North Cormorant platform. Oil production is transported by pipeline to the North Cormorant production platform where it is processed before being exported to the Sullom Voe terminal via the Brent Pipeline System for sale. In the first quarter of 2013, the Company recognized oil revenue of $12 million.

Rig operations commenced in January 2013 to complete the water injector for the Causeway Field and were completed in February 2013. Anticipated startup of the downhole electrical submersible pump (“ESP”) will follow completion of topside modifications on the North Cormorant production platform, and is scheduled for the second half of 2013. The recently completed water injection well is expected to commence operation in 2014.

As part of the sale of a 30% working interest in the Causeway Licences to Valiant Petroleum plc (“Valiant”) in October 2011, Antrim entered into a Differential Lifting Agreement (“DLA”) giving Valiant a temporary right to 6.25% of Antrim’s share of produced oil. Antrim’s share of oil produced will be reduced to 29.25% until a cumulative value of $8.9 million after-tax is received by Valiant. Once satisfied, Antrim’s working interest in production will revert back from 29.25% to 35.5%.

Under the terms of the Fionn Field Supplementary Agreement signed with Valiant in January 2012, Antrim had an option for three months following first oil production from the Causeway Field to opt out of participating in the Fionn Field development and sell its 35.5% working interest share to Valiant for the cost of its 35.5% working share of the Fionn Field pre-investment costs, or to confirm its continued participation by repaying its share of the Fionn pre-investment costs plus interest.

In February 2013, Antrim announced that it had elected to opt out of participating in further development of the Fionn Field. The projected costs associated with the development of Fionn had increased to the extent that the project no longer met Antrim’s economic criteria. Subject to all necessary approvals from the UK Department of Energy and Climate Change (“DECC”), Antrim intends to withdraw from the Fionn Field subarea and will not incur any further liabilities.

Contender Licence

P201 Block 211/22a Contender Area, Antrim 8.4%

On January 14, 2013, Antrim announced that first oil production had been achieved from the Cormorant East Field 85 days after discovery of the field. Production is processed through the North Cormorant platform before being exported to the Sullom Voe terminal. The Cormorant East Field is initially being produced under primary depletion with a single production well, with the potential to install a water injection scheme and/or additional production wells at a later date. Future drilling locations are being considered by the partners.

Production from the Cormorant East Field averaged 688 gross bopd in the first quarter of 2013 compared to nil in 2012, after production commenced in January 2013. During the quarter, pressure problems experienced on the well have resulted in shut-ins and reduced production volumes. Further, production in the quarter was interrupted for nine days due to a shut down on the Cormorant Alpha platform.

Under the terms of the farm-out agreement with the operator, 100% of the drilling, completion and tie in costs of the Contender Well were funded by the operator. Antrim will receive its share of production after Antrim’s working interest share of the completion and tie in costs are recovered from production revenue.

Ireland

Licensing Option 11/5 Blocks 44/4, 44/5 (part), 44/9, 44/10, 44/14, 44/15, Antrim 25%

Antrim acquired the Licensing Option in the 2011 Atlantic Margin Licensing Round. The Licensing Option includes Blocks 44/4, 44/5 (part), 44/9, 44/10, 44/14 and 44/15, an area of 1,409 km2. Antrim has licensed, reprocessed and interpreted 2D seismic data over the blocks and identified a Cretaceous deep sea fan complex similar in seismic character to many of the recent Cretaceous discoveries offshore West Africa.

On April 18, 2013, the Company announced a farmout agreement of the Licencing Option to Kosmos Energy Ltd. (“Kosmos”). Kosmos will acquire a 75% interest in, and operatorship, of the Licensing Option in exchange for carrying the full costs of a planned 3D seismic program within the licence area (the “Skellig Block”) and re-imbursement to Antrim of a portion of the exploration costs incurred on the blocks to date. Antrim will retain a 25% interest. In May 2013 the transaction was approved by the Department of Communications, Energy and Natural Resources of Ireland (“DCENR”). Kosmos and Antrim expect to apply to DCENR for conversion of the Licensing Option to a Frontier Exploration Licence and approval for the 3D seismic program as soon as possible. Under the terms of the Licensing Option, a minimum 25% of the area must be relinquished when converting to a Frontier Exploration Licence.

Tanzania

Production Sharing Agreement – Pemba and Zanzibar

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. Should Antrim exercise the initial option, costs for the seismic phase associated with Antrim’s acquired 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 in the near future.

On October 29, 2012, an agreement between the federal government of Tanzania and the government of Zanzibar on the sharing of any future hydrocarbon revenues was announced, potentially ending a moratorium which has delayed exploration of the licence. The agreement has still to be ratified and final details are still to be agreed. It is not yet known what, if any, impact this agreement will have on the P-Z PSA.

Fyne Licence

P077 Block 21/28a – Fyne and Crinan, Antrim 100%

In late March 2013 the Company announced that it would not proceed with development of the Fyne Field with the Teekay FPSO. Until late March, estimated costs indicated that the planned Fyne development satisfied the Company’s economic threshold and, contingent on timing of the redeployment of the FPSO from its current location, was on track for a late 2014 start-up. However, projected capital costs increased substantially, and in the Company’s view, made the project uneconomic under the FPSO development proposal. The licence remains valid and the Company is in discussions with potential partners regarding future development programs.

Carra

P1563 Blocks 21/28b and 21/29c, Antrim 100%

Licence P1563 contains the Carra Prospect, the Riddon and Scavaig discoveries and several other prospects. In October 2012, DECC agreed to waive the contingent well obligation on Licence P1563 Blocks 21/28b & 21/29c as it was determined by Antrim that there was insufficient potential to proceed with drilling. The licence was relinquished in February 2013.

West Teal

Licence P1625 Block 21/24b, Antrim 100%

In March 2013, DECC agreed to waive the contingent well obligation on Licence P1625 Block 21/24b which allows the Company to relinquish the licence in its entirety. Accordingly, the Company plans to relinquish the licence in its entirety in the second quarter of 2013.

Corporate

On January 23, 2013, Antrim announced that it entered into a $30 million payment swap transaction with a major financial institution. This transaction provided Antrim with funding to meet its commitments for cost overruns on the completion of the production well in the Causeway Field, future costs related to the Causeway water injection well and initial FEED work associated with the Fyne Field.

Under the terms of the payment swap, $30 million is repayable in 29 instalments commencing September 2013 and concluding January 2016. As a part of the transaction, Antrim also entered into a forward sale of 657,350 barrels of Brent crude oil at a fixed price of $89.37 covering the period from February 2013 to December 2015.

Following the closing of the payment swap, Antrim also paid a fee of $487,500 to a major shareholder as a break fee relating to a proposed standby alternative debt financing arrangement. The major shareholder is considered a related party of the Company, as at the date of this press release, they directly or indirectly owned or controlled 33,588,900 common shares (representing 18.2% of the issued and outstanding common shares) of the Company.

Financial Resources, Liquidity and Going Concern

In January 2013, the Company entered into a $30 million payment swap transaction which is subject to a number of financial and operating covenants. In addition, funds received from the swap arrangement are subject to restrictions as to their use and subsequent to March 31, 2013 additional restrictions were imposed following lower than anticipated production volumes during the quarter. The Company is working with the lender to reduce the impact of these additional restrictions, however, there is no certainty that the funds will be made available which may cast further doubt on the Company’s ability to continue as a going concern. The restrictions may impact the Company’s ability to fund capital expenditure and operations.

There are a number of material uncertainties that raise significant doubts as to the Company’s ability to continue as a going concern, including the performance of the producing wells, oil prices, ability to finish the planned development program within budget, ability to secure additional financing, relinquishment of commitments on certain licences and settlement of contingencies.

If the lender does not reduce the restrictions the Company has other viable options such as issuing new equity and/or debt, selling and/or acquiring assets, and controlling capital expenditure programs.

As at March 31, 2013, Antrim had a working capital deficiency of $4.6 million compared to a working capital deficiency of $10.7 million as at December 31, 2012. The lower working capital deficiency is primarily due to the payment swap transaction and operations, partially offset by costs for the development of the Causeway and Fyne Fields.

Accounts payable and accrued liabilities were $19.7 million at March 31, 2013 primarily related to costs for the development of the Causeway and Fyne Fields, compared to $18.1 million as at December 31, 2012.

Although there have been improvements in the global economy and financial markets, restrictions on availability of credit remain and may limit Antrim’s ability to access debt or equity financing for its exploration and development projects. Antrim forecasts cash flows against a range of macroeconomic and financing market scenarios in an effort to identify future commitments and arrange financing, if necessary.

Antrim’s planned capital program for 2013 is primarily costs associated with the ongoing development of the Causeway Field and the Cormorant East Field.

Outlook

Antrim expects to see increased production from the Causeway Field following deployment of the ESP in the second half of 2013. A water injection scheme is scheduled to commence operation in 2014.

Following the discovery of the Cormorant East Field by the Contender Well, Antrim anticipates at least one appraisal well, downdip of the discovery well and a plan to explore the adjacent fault compartments.

Recent seismic studies on the Skellig block in the Porcupine Basin offshore Southwest Ireland have high graded the Dunree Prospect, adjacent to the licence holding the Dunquin Prospect, where drilling operations commenced in April 2013. Antrim and its joint venture partner Kosmos plan to apply for conversion of the Licensing Option to a Frontier Exploration Licence in the second quarter of 2013 and obtain approval for a 3D seismic program to cover the entire licence.

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Press Release, May 15, 2013