Antrim Energy Inc. ATGYF

RE: Antrim Valuation

[Bigbadoil]

$15NPV (in the ground)is ok to use for exploration projects. For Producing projects it is a little low. AEN is about a year away from producing at Causeway e.g Oilexco last year was given a value of $28 per bbl for P1 reserves and $22 per barrel for P2 in their year end 2006 report (dec 31 2006) Brenda did not start producing until May 2007. I would venture to guess that those numbers will be higher this year because Oil prices have risen. Try using $22 per barrel for those Causeway reserves. I like your valuation method on Argentina because most deals are going for $50.000 per flowing BOE in Western Canada right now, but of course they get world prices which are almost double that they recieve in Argie. I would also mention that alot of the deals in W. Canada are very gas weighted too which maybe depressing the price here. AEN have drilled a fair bunch of wells in Argie since the last report. I think we will see a significant reserve increase year on year there..so that has to be taken into consideration too as they will have "reserves in the ground". The finding costs are very low in Argentina relative to W. Canada, so even though the latter is getting higher (world Prices), the netbacks for gas and heavy oil relative to Argentina are about the same!! Bigbadun' Bigbadun'