Antrim Drills Two Additional Gas Wells in Argentina

Antrim Energy Inc. announced that it has drilled and cased two more Springhill gas wells in Tierra del Fuego, Argentina. These two wells are in addition to the eight successful Springhill wells already drilled and cased in Tierra del Fuego to date this year.

Antrim's working interest in the Tierra del Fuego concession is 25.78%.

The two new wells targeted the Los Flamencos gas field’s northwestern flank, where the LF-1005 appraisal well tested eight mmcuft/d from seven meters of Springhill reservoir in December 2006. The first well, LF-1011, was drilled 1150 meters to the East South East and 34 meters structurally higher to well LF-1005 and encountered 13 meters of gas pay. The second, LF-1010, was drilled 1320 meters due west of LF-1005 and found the Springhill reservoir 38 meters structurally lower, with 16 meters of net pay in good quality sandstone.

Reservoir quality in both wells is similar to that originally encountered in well LF-1005, but thicker pays could lead to higher test rates and, along with an uninterrupted gas column, substantially increase the reserve potential of the Los Flamencos structure.

These two wells have proven to date an 88 meter gas column on this structure; no oil or water leg has yet been encountered. Both of these wells will be completed after the AS-1001 exploration well is tested, which is expected at a later date. The drilling rig is now being moved to drill two locations offsetting LV-110, the Springhill oil well drilled earlier this year.

Of the 137 square kilometres 3-D seismic program which commenced on June 9, 2008 35 square kilometers has been acquired over the Gaviotas prospect in the Angostura concession and is now being processed. The remaining 102 square kilometers covering the Puesto Quince prospect in the Las Violetas concession is also progressing well, with acquisition expected to begin shortly.
First stage commissioning on the pipeline linking the Company's gas producing fields with the San Martin gas sales line across the Straits of Magellan is expected to be completed by the end of July. This will enable the Company to redirect and deliver gas to the continent where a higher price is available. Meanwhile, work continues on the main compression facilities as well as on the rest of the system, with full pipe capacity expected during the third quarter.