Dr. Gang Fang reports

ANTERRA ENERGY ANNOUNCES SECOND QUARTER 2015 FINANCIAL AND OPERATING RESULTS

Anterra Energy Inc. has released its financial and operating results for the three and six months ended June 30, 2015. Selected information presented in this press release should be read in conjunction with the company's unaudited financial statements and related management discussion and analysis filed with the Canadian regulatory authorities and available on SEDAR and on the company's website.

Operations

• Continuing low crude oil prices experienced during the first half of 2015 had a major negative impact on the company's overall 2015 performance. Production revenue, excluding the impact of risk management commodity contracts, for the six months ended June 30, 2015, decreased 54 per cent to $5.3-million from $11.4-million for same period in 2014, primarily as a result of a 47-per-cent reduction in realized average commodity prices. For the first half of 2015, realized commodity prices averaged $49.94 per barrel of oil equivalent, compared with $90.15 per barrel of oil equivalent during the first half of 2014.
• The company's mid-stream operations, primarily at Breton, continued to generate strong revenue and cash flow. First-half 2015 mid-stream revenue of $1.85-million was virtually the same as revenue for the comparable period in 2014. However, due to lower operating costs, funds generated by mid-stream operations (determined as revenues less direct operating expenses), increased 20 per cent to $1.15-million for the first half of 2015 as compared with $960,000 for the first half of 2014.
• Production for the six months ended June 30, 2015, averaged 581 barrels of oil equivalent per day, a decrease of 17 per cent compared with 697 barrels of oil equivalent per day for the first half of 2014. As a result of quality adjustments, blending charges and trucking costs, production from the company's Two Creek property became uneconomical at the current low prices and was shut in at the beginning of March, 2015.
• During the second quarter of 2015, insurance claims totalling $2.4-million relating to spill cleanup and remediation costs incurred and expensed in 2014 and 2015 were approved by the company's insurer, and the company recorded a net cost recovery of $1.5-million for the six months ended June 30, 2015.
• In addition to the contribution from mid-stream activities and the recovery of spill cleanup and remediation costs, overall company operations were positively impacted by risk management contracts, which resulted in a realized gain of $743,829 during the six months ended June 30, 2015.

            SUMMARY OF FINANCIAL AND OPERATING RESULTS

                                 Three months ended        Six months ended
                                June 30,    June 30,    June 30,    June 30,
                                   2015        2014        2015        2014
Financial
Oil and gas sales            $2,801,108  $5,655,261  $5,249,120 $11,370,921
Mid-stream revenue              856,179     957,861   1,850,617   1,850,700
Funds flow from
operations (1)                  727,017   1,105,934     877,991   2,498,497
Per share basic
and diluted                       0.001       0.002       0.002       0.005
Realized risk management
gain                            248,049           -     743,829           -
Net income (loss)               830,857    (132,433)    (11,517)     35,226
Per share basic
and diluted                       0.002      (0.001)     (0.001)      0.001
Capital expenditures            (71,633)    896,057      77,184   1,641,598
Net debt (1)                 22,822,260  17,198,433  22,822,260  17,198,433
Net debt to annualized
funds flow (1)                   13.0:1       3.4:1      13.0:1       3.4:1
Property, plant and
equipment                    64,466,774  71,695,944  64,466,774  71,695,944
Exploration and evaluation
assets                          386,667     386,667     386,667     386,667
Shareholder equity           17,621,282  33,721,603  17,621,282  33,721,603
Operating
Average production
Light and medium crude
oil (bbl/d)                         421         585         472         598
Natural gas (mcf/d)                 280         397         310         441
NGLs (bbl/d)                         72          27          57          26
Boe/d                               540         679         581         697
Percentage oil
and NGLs                            91%         90%         91%         90%
Average realized price
Light and medium crude
oil ($/bbl)                     $ 66.02     $100.13     $ 56.09     $ 98.18
Natural gas ($/mcf)                2.80        5.06        2.99        5.75
NGLs ($/bbl)                      30.31       56.01       27.75       62.83
Oil and gas field
netback (1) ($/boe)
Oil and gas sales                 57.02       91.55       49.94       90.15
Realized risk management
gain                               5.05           -        7.08           -
Royalties                          5.76       23.59        6.54       21.61
Operating and
transportation expense            37.17       44.49       38.91       42.68
Field netback                     19.15       23.47       11.57       25.86
Mid-stream net operating
revenue                         507,529     471,807   1,153,097     963,088

(1) Funds flow from operations, net debt, net debt to annualized funds
    flow and field netback are non-GAAP (generally accepted
    accounting principles) measures. 

We seek Safe Harbor.