Anterra Energy Announces Second Quarter Results, Operational Update

    TSXV Symbol: AE.A and AE.B

    32,169,040 Class A Shares
    753,014 Class B Shares

    CALGARY, Aug. 22 /CNW/ - Anterra Energy Inc. ("Anterra" or the "Company")
today announced its financial and operating results for the three month and
six month periods ended June 30, 2008. The unaudited financial statements,
notes and MD&A for the period are filed on SEDAR at and are
available on Anterra's website at


    -  Consolidated average production for the quarter of 225 barrels of oil
       equivalent per day (boepd) compared to an average 261 boepd in the
       second quarter of 2007, due to well problems at Breton. Production
       consisted of 80% oil and 20% gas.

    -  Funds flow from operations for the second quarter increased
       significantly to $690,022 from $453,767 in the second quarter of 2007,
       and to $1,308,601 for the first six months of 2008, from $753,497 in
       2007, primarily as a result of higher oil and gas prices and a greater
       contribution from midstream operations.

    -  Net income for the quarter was $18,994 compared to a net loss of
       $88,127 for the same quarter a year earlier.

    -  The midstream business delivered second quarter earnings before
       interest, taxes, depreciation, and amortization (EBITDA) of $101,246,
       an increase of 85% from $54,748 for the same period last year.

    -  Capital investment for the quarter was $660,853.

    "During the first half of the year, management recognized that its
conventional exploration and development projects were not providing the
Company with predictable and sustainable growth in production and shareholder
value," said Bill Johnson, President and COO of Anterra. "As a result
Anterra's business plan is now focused more on resource projects in non
conventional and tight conventional reservoirs where the use of horizontal
wells and multi stage completion technology lowers exploration risk."
    "We still intend to continue with conventional oil and gas exploration on
our lands primarily using farm outs and joint ventures while allocating our
own capital to these more repeatable resource projects. Because of their
repeatability, these projects can add to Company reserves and production and
the resulting improvement in a Company's financial performance attracts
capital and new shareholders and can result in increases in shareholder value.
We have experienced people in place to execute on our new business plan, which
will enable us to move quickly to acquire additional lands over our four core
resource projects and then proceed to exploit these lands with horizontal
wells and multi stage completions."

    Financial Summary

                           Three Months  Three Months  Six Months  Six Months
                             June 30,      June 30,     June 30,    June 30,
                               2008          2007         2008        2007

    Oil and Gas Production
    Revenue                    2,064,712   1,443,991   3,917,978   2,602,687
    Royalties                   (185,810)   (113,930)   (310,948)   (213,871)
    Gross overriding royalties     1,949       3,499       3,484       3,499
    Net revenue                1,880,851   1,333,560   3,610,514   2,392,315
    Operating costs              799,161     497,728   1,616,005     973,703
    Oil and gas operating
     margin                    1,081,690     835,832   1,994,509   1,418,612

    Midstream Processing
    Revenue                      365,467     244,796     744,156     540,703
    Operating costs              264,221     190,048     507,462     367,973
    Midstream operating margin   101,246      54,748     236,694     172,730

    Other revenue                      -           -           -           -
    Intersegment revenue
     and cost                    (41,794)    (46,080)    (93,612)    (95,041)

    Total Net Revenue          2,204,524   1,532,276   4,261,058   2,837,977
    Total Operating Costs      1,021,588     641,696   2,029,855   1,246,635
    Total Operating Margin     1,182,936     890,580   2,231,203   1,591,342

    General and administration   407,985     371,585     808,571     690,349
    Stock compensation            19,653      76,462      99,993      87,126
    Interest                      84,929      65,228     114,031     147,496
    Depletion, depreciation,
     accretion                   644,698     471,358   1,258,662     834,984
    Total Expenses             1,157,265     984,633   2,281,257   1,759,955

    Net Profit (Loss) Before Tax  25,671     (94,053)    (50,054)   (168,613)
    Provision For Taxes            6,677      (5,926)    (16,283)    (32,112)
    Net Profit (Loss)             18,994     (88,127)    (33,771)   (136,501)

    Earnings per Class A Share
    Basic                         (0.001)     (0.004)     (0.001)     (0.007)
    Fully Diluted                 (0.001)     (0.004)     (0.001)     (0.007)
    Weighted Average Number
     of Shares In Thousands   32,169,000  20,553,000  32,169,000  18,244,000

    Funds Flow From Operations   690,022     453,767   1,308,601     753,497
    Funds Flow Per Class A Share   0.021       0.022       0.041       0.041

    Operations Overview

    During the second quarter, the Company negotiated farm-outs on its
conventional oil and gas exploration projects as well as building the
go-forward strategy and business plan around the pursuit of four repeatable
resource plays where the use of horizontal drilling and multi stage
completions is redefining the nature of oil and gas exploration and
development in western Canada. The Company's new president and COO Bill
Johnson, has spent several years working on resource projects with Canada's
premier non conventional explorer and brings to Anterra significant business
and technical acumen in this area.

    SW Saskatchewan

    During the first half of 2008, Anterra drilled two Upper Shaunavon
vertical commitment wells on its Section 7 farm-in. These wells are small
producers and their real value lies in providing essential geological control
for horizontal drilling potential in both the Upper and Lower Shaunavon
formations. Total oil production from Frontier is currently 25 bopd and the
Company has one more vertical earning well to drill.
    Subsequent to the end of the quarter, and as previously announced, the
Company entered into a joint venture with Reece Energy Exploration Corp.
("Reece") with the signing of three separate agreements. Under the terms of
the agreements, Reece will invest $3.5 million on Anterra's lands at Frontier.
The first Lower Shaunavon horizontal well is expected to begin drilling prior
to the end of the third quarter.
    The agreements create an area of mutual interest between Reece and
Anterra covering twenty townships. Once the earning obligations are fulfilled,
Reece will have earned 50% of Anterra's interest in all available mineral
rights in over 1,500 acres including existing production in the Upper
Shaunavon. Reece and Anterra have agreed that Reece will operate the drilling
and completion of all new wells drilled on the joint venture lands. The
earning obligations are expected to commence immediately with completion
anticipated by December 31, 2008. The partners continue to acquire additional
lands in the area and expect horizontal development at Frontier to become a
significant part of Anterra's go forward business plan.

    Central Alberta

    At Breton, the focus is on maintaining production at over 150 boepd which
provides the base production and cash flow needed while the Company develops
its resource projects. Production had fallen somewhat during the second
quarter due to well problems which are being resolved. Operating costs have
been higher than expected over the first half of the year due to extensive
well service work which is expected to moderate over the balance of the year.
    At Judy Creek, the Company is completing the tie-in of a 600 mscfd (100
boepd) 100% working interest gas well. In addition, the Company has farmed out
the drilling of two deep Swan Hills reef tests to a third party. The two new
wells will be drilled in the fall of 2008 by a joint venture partner who will
spend $5 million to earn between 40% and 50% in the lands and production.
    At Sakwatamau, the Company has a 20% working interest before pay-out and
a 60% working interest after pay-out in a new Shunda oil well at LSD 06-32
which is shut in awaiting an acid stimulation. The Company also has a 60%
working interest in a second well at LSD (2) 06-32 which has gas in the
Wilrich and Belly River zones. Work will resume on both wells after freeze-up
in late Q4. There are also three Shunda development well locations on the
    At Shadow, the Company has defined three prospective Gilwood well
locations, and has farmed out the drilling of two Gilwood tests with the first
well expected to drill during the third quarter of 2008. The Gilwood is at
2,400 metres, and a typical well will cost $800,000 to drill and complete.
Anterra intends to retain a 40% to 50% after pay-out working interest in the
project. Typical Gilwood wells in the area produce at rates exceeding 100 bopd
and have historically produced more than 500,000 boe per well. Prior to
earning by the joint venture partner, Anterra owns 100% interest in the 1,760
acre property.

    SE Alberta

    This area is non core to the Company and the only scheduled activity is
the drilling of one horizontal Pekisko development well at Matziwin which is
anticipated in the fourth quarter of 2008. This well will be a "hybrid" in
that the Company will be using a multi stage completion on a short leg
horizontal well looking to improve productivity in this "tight" oil charged
reservoir. Should the development well be successful, the Company intends to
conduct a three well development program.


    The midstream business continues to grow at Breton and Suffield with
second quarter business up 85% over the same three month period in 2007. Cash
flow from these facilities is growing and provides financial resources to the
Company to invest in lands over the developing resource projects.


    Once the new gas well at Judy Creek comes on stream and accounting for
normal depletion, production from existing operations is expected to be an
estimated 300 boepd for the remainder of the year. Cash flow for the third
quarter could be affected by commodity pricing and may grow with the addition
of new production from Judy Creek and success at Matziwin. During the balance
of 2008, the Company will have exposure to five high impact wells with
$9.1 million of exploration and development expenditures committed by joint
venture partners on its lands. There is $6.6 million being spent on
conventional oil and gas exploration at Judy Creek and Shadow and up to
$3.5 million on horizontal development at Frontier during the second half of
2008. The Company will be focusing its own resources on the acquisition of
land over its four core resource projects, including Frontier and one
horizontal well at Matziwin.

    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

    Forward-Looking Information

    This news release contains forward-looking information related to the
Company's planned land acquisitions, drilling program, production and
operating costs. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results
to differ from those anticipated. These risks include, but are not limited to,
risks associated with the oil and gas industry (e.g., operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of estimates in relation to reserves, production and expenses;
health, safety and environmental risks; and the uncertainty of dealing with
government and obtaining regulatory approvals). Due to the risks,
uncertainties and assumptions inherent in forward-looking statements,
prospective investors in the Company's securities should not place undue
reliance on them.
    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.
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. In addition, 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 wellhead.

    Reader Advisory

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this press 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., Tel: (403) 215-2384, Facsimile:
(403) 261-6601, E-mail:

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