Anterra Energy announces financial results and provides operations update

    TSXV Symbols: AE.A and AE.B
    38,001,398 Class A Shares
    753,014 Class B Shares

    CALGARY, April 29 /CNW/ - Anterra Energy Inc. ("Anterra" or the
"Company") today released its financial and operating results for the three
months and year ended December 31, 2008. The full text of the Company's
audited consolidated financial statements and related management's discussion
and analysis ("MD&A") can be found at: and on the Company's
website at


    -   For 2008, revenues from oil and gas production increased 10% to
    $6,703,888 compared to 2007. Anterra is primarily an oil producing
    company and revenues of $962,410 for the fourth quarter reflect a
    decrease of 48% over the same period last year primarily due to
    falling oil prices.

    -   In 2008, year-over-year revenues from midstream processing increased
    28% to $1,601,311 while midstream processing revenues in the fourth
    quarter increased by 5% to $407,917 compared to the fourth quarter of

    -   During the fourth quarter, the Company drilled and completed its
    first horizontal well in the Lower Shaunavon in SW Saskatchewan and
    the well has been on production since early December, 2008. The
    Company and its partner continue to assess the well performance.


    The net loss in the fourth quarter of 2008 was $1,761,937 which compares
to net income of $157,413 in the fourth quarter of 2007. The operating margin
for the fourth quarter of 2008 was $362,193 compared to $1,090,992 for the
fourth quarter of 2007. For the full 2008 year, the net loss was $1,864,731
after a tax recovery for the year of $542,095, compared to a net loss of
$27,102 in 2007.


    The Company presently has a $6,000,000 revolving demand loan facility and
an additional $1,000,000 non-revolving acquisition and development demand loan
facility with a Canadian chartered bank. As at December 31, 2008, the Company
had drawn $5,376,763 on the revolving facility and had a total working capital
deficit including bank debt of $7,153,436. The amount drawn on the revolving
facility is shown as a current liability and at year end the Company was not
in compliance with its working capital covenant and has requested a waiver
from the Bank. The availability of credit under the facility is subject to
periodic review by the lender with the next review scheduled for May, 2009.


    Production in 2008 averaged 222 boepd down from an average of 260 boepd
in 2007. The fall in production was due to production declines, shut-in of
marginal wells and poor exploration results with little in the way of
production adds during the year. The Company did add between 50 and 60 boepd
from the Lower Shaunavon horizontal well in Saskatchewan and the 14-20 gas
well at Judy Creek, but the performance of both wells has not met
expectations. At Judy Creek, the 14-20 gas well tested at rates in excess of
500 mcfd during completion but due to near well bore damage performed at half
this rate. A fracture treatment planned for early July is anticipated to
restore production to tested rates. In Saskatchewan, the performance of the
Lower Shaunavon oil well continues to be evaluated and at present the well is
producing 60 bpd of total fluid with a 30% oil cut. This low production rate
is most unusual compared to similar wells in the area and the well is
demonstrating evidence of plugging in the horizontal section. Anterra's 50%
partner, Penn West, is very active in the Lower Shaunavon area and the Company
plans to meet with Penn West's technical staff over the next few weeks to
discuss remedial work and a development plan for the project. With oil prices
at $US50.00 and service costs still high, the development economics for the
project remain marginal. However, this 10,000 acre resource project is
Anterra's biggest development opportunity and its most valuable property.
    At Matziwin, the Company has recently signed a farm out agreement with a
joint venture partner to drill an infill horizontal well. Under the terms of
the agreement, the partner pays 100% of the drilling, completion and tie-in
costs to earn a 60% working interest for the first 9 months of production with
Anterra retaining a 40% working interest. After the first nine months of
production, each party reverts to a 50% working interest. The well will be
drilled in early June with first oil production estimated for July and if
successful, the Company has two additional locations to drill on the project.
    Midstream operations at Breton continue to deliver solid performance
averaging $50,000 per month in operating margin during 2008. The midstream
business offers an element of cash flow stability in an environment of
volatile oil and gas prices and the Company is presently evaluating a second
midstream opportunity as well as additional ways to exploit and build on this
stable cash flow stream.

    2009 OUTLOOK

    Poor exploration results, low oil and gas prices and declining production
adversely affected the Company's cash flow and balance sheet in the fourth
quarter of 2008. The Company's primary focus during the early months of 2009
has been to maximize cash flow in a low commodity price environment while
addressing a capital shortfall. With a working capital deficit, before bank
debt, of approximately $2,000,000 at year end 2008 and little in the way of
free cash flow to pay down this deficit, the Company has been working with
creditors and financiers to find a solution to this financial difficulty.
    Once financial matters have been resolved and economic conditions
improve, the Company intends to turn its focus to its two core projects in
Breton, Alberta and Frontier, SW Saskatchewan. At Breton the focus is on
expanding the Company's land base over this tight gas play with the intention
of drilling the first horizontal well in early 2010. At Frontier, management
is developing a realistic exploitation plan for the Lower Shaunavon with its
new partner Penn West. Once a plan has been completed for the properties and
with recovering commodity prices, the Company will proceed with this project.
    The management and directors of Anterra are all shareholders of the
Company and share the concern of shareholders over the significant impact that
poor exploration results combined with difficult market conditions have had on
the Company's valuation. The Company executed a high risk exploration strategy
in 2007 and 2008, and with the benefit of hindsight, it is now apparent that
this strategy exposed the Company and its shareholders to certain risks. The
result is that the Company has been caught with negative working capital in a
declining commodity price environment. A plan is being developed to remedy
this situation, strengthen the Company's balance sheet and to provide capital
for some of the lower risk opportunities in inventory. Management and the
directors ask shareholders to remain patient as they work towards resolving
the Company's financial difficulties while building a stronger platform from
which to move forward.

    About Anterra Energy

    Anterra Energy is an independent exploration, development and production
company with an emerging focus on the use of advanced technologies including
3-D imaging, horizontal drilling and multi-stage completions to systematically
develop its portfolio of conventional and non-conventional oil and gas
projects. Complementing this strong exploitation and development focus, the
Company owns and operates fee-based midstream facilities in western Canada.
Anterra is a public Canadian company listed on the TSX Venture Exchange under
the symbols AE.A and AE.B. More information about Anterra is available on the
internet at

    Reader Advisory:

    This news release contains certain forward-looking statements, which
include assumptions with respect to (i) production; (ii) future capital
expenditures; (iii) funds from operations; (iv) cash flow; and (v) debt
levels. The reader is cautioned that assumptions used in the preparation of
such information may prove to be incorrect. All such forward-looking
statements involve substantial known and unknown risks and uncertainties,
certain of which are beyond the Company's control. Such risks and
uncertainties include, without limitation, the ability of the Company to reach
settlement with certain of its creditors, risks associated with oil and
natural gas exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada and the United
States, industry conditions, changes in laws and regulations (including the
adoption of new environmental laws and regulations) and changes in how they
are interpreted and enforced, increased competition, the lack of availability
of qualified personnel or management, fluctuations in foreign exchange or
interest rates, and stock market volatility. The Company's actual results,
performance or achievements could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do, what
benefits, including the amount of proceeds, the Company will derive therefrom.
Readers are cautioned that the foregoing list of factors is not exhaustive.
All subsequent forward-looking statements, whether written or oral,
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Furthermore, the
forward-looking statements contained in this news release are made as at the
date of this news release and the Company does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by applicable securities laws.

    The term BOE or BOEs may be misleading, particularly if used in
isolation. A BOE (barrel of oil equivalent) conversion ratio of 6 mcf per one
(1) BOE is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the

    Funds flow from operations is not a recognized measure under Canadian
generally accepted accounting principles (GAAP). However, management believes
that funds flow from operations is a useful measure of financial performance
as management believes it is a commonly accepted measure in the industry which
is useful for knowledgeable investors for comparison purposes. For the
purposes of funds flow from operations calculations, funds flow is defined as
"Funds flow from operations" before changes in non-cash operating working
capital. Anterra's determination of funds flow from operations may not be
comparable to that reported by other companies. Operating margin is not a
recognized measure under GAAP; however management believes it is a useful
measure of financial performance for assessing the operations of the Company.
Operating margin is defined as revenue less operating costs, both of which are
GAAP measures.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00025272E

For further information:

For further information: Owen C. Pinnell, Chairman and Chief Executive
Officer, Anterra Energy Inc., Telephone: (403) 215-2427, Facsimile: (403)
261-6601, E-mail:; Bill Johnson, President and
Chief Operating Officer, Anterra Energy Inc., Telephone (403) 215-2384,
Facsimile: (403) 261-6601, E-mail:

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