CALGARY, ALBERTA, August 22, 2008 – 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 www.sedar.com and are available on Anterra’s website at www.anterraenergy.com.

HIGHLIGHTS

• 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

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 property.

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.

Midstream

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.

Outlook

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 www.anterraenergy.com

For further information, please contact:

For further information, please contact:

Owen C. Pinnell
Chairman and Chief Executive Officer
Anterra Energy Inc.

Telephone: (403) 215-2427
Facsimile: (403) 261-6601
E-mail: pinnello@anterraenergy.com

Bill Johnson
President and Chief Operating Officer
Anterra Energy Inc.

Tel: (403) 215-2384
Facsimilie: (403) 261-6601
E-mail: johnsonb@anterraenergy.com

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.

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