Antrim Farmouts Stake in South Galapagos-1 Well

Antrim Energy has entered into a Farmout Agreement with ONGC Videsh Limited whereby OVL will earn a 55% working interest in permit WA-306-P, Barcoo Sub-basin, for funding 80% of the gross well cost up to USD$9.0 million of Antrim's proposed South Galapagos #1 well, offshore Australia. Antrim will remain Operator of the project and retain a 32.5% working interest in the permit. The remaining 12.5% working interest is held by Magellan Petroleum (W.A) Pty. Ltd.. Completion of the Farmout Agreement is subject to certain conditions including the approval of the Australian Foreign Investment Review Board.

The South Galapagos #1 well is scheduled to spud in September using Transocean's semi-submersible drilling platform the Sedco 703. The Sedco 703 drilling rig has been released by Chevron Texaco from its successful Wheatstone-1 location and is scheduled to drill one additional well before being made available to Antrim.

Permit WA-306-P contains a cluster of drilling prospects including "Galapagos" and "South Galapagos". The first well, South Galapagos #1, will be drilled on Permit WA-306-P in 345 meters of water to a projected depth of 3775 meters in the Jurassic section. Drilling time to total depth is estimated to be 32 days.

ONGC Videsh Limited is a wholly owned subsidiary of the Oil and Natural Gas Corporation Limited, India's largest integrated oil and gas company. OVL operates exclusively in international markets and is active in Asia Pacific, the Middle East and Africa.

Stephen Greer, Chairman and CEO of Antrim said, "OVL's participation in this strategic farm-out underscores the high potential of our Australian drilling operation. The farm-out also ensures that Antrim will be well-funded to participate in any development of a successful discovery in Australia and will further allow the Company to accelerate its drilling program in the UK North Sea. Antrim retains operatorship in the Australian venture and the Company has reinforced its strategy of high working interests in all of its high impact exploration drilling programs".

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