ATHLONE ENERGY LTD.
ATH-TSX-V      
Suite 250, 1220 Kensington Road NW
Calgary, AB Canada T2N 3P5
Telephone:      (403) 261-4791
Facsimile:      (403) 266-4798
E-mail: info@athlone.com
Website:        www.athlone.com


May 14, 2008    NEWS RELEASE    Trading Symbol: TSX-V.ATH
NR08-03
Athlone Announces Strategic Process
       
Athlone Energy Ltd. (TSX VENTURE: ATH) (the "Company" or "Athlone") is pleased to announce that its board of directors has unanimously approved a process to review strategic alternatives to maximize shareholder value and has retained Jennings Capital Inc. to act as its exclusive financial advisor to assist in exploring strategic alternatives.
Commenting on this announcement, Garry Lohuis, President & CEO of Athlone, said:
"Our board of directors has concluded that the timing is favorable to review opportunities to maximize value and create liquidity for our shareholders.  Athlone's production and cash flow are at record levels and our focused assets are of high quality with high netbacks.  The Company has significant, low risk growth potential in its Vermilion and South Lloydminster heavy oil properties."
"Over the past three years Athlone has grown through the drill bit from a company with few assets and no production to a healthy junior oil and gas producer with current oil and gas production of approximately 750 boepd.  Athlone accomplished this growth with the issuance of only $9 million in equity.  Current monthly cash flow (after G&A and interest) is now approximately $0.9 million."
Operations
In the Lloydminster core area two gas wells were recently recompleted and one new oil well was drilled. On the Vermilion property a Dina gas well was successfully recompleted.  The Company plans to construct a pipeline to place the well on stream at rates of 300 - 400 mcfpd (50 to 60 boepd) by mid-August 2008.  Internal reserves estimates for this well are between 0.4 and 0.6 Bcf.
At Vermilion, a new Sparky oil well was drilled and placed on production on April 10, 2008 and is currently producing at approximately 60 boepd.  Four additional wells have been licensed in the Lloydminster area to be drilled after break-up.  Based on the Company's recent success at Vermilion, Athlone has made a down spacing holding application which will facilitate the drilling of up 20 low risk vertical infill locations on its lands in the area.  Athlone has a 100% working interest in the Lloydminster core area.
At Grand Forks Athlone has committed to drill a Bow Island gas test prior to September 15, 2008 which will earn 2 sections of land.
Heavy oil pricing has been particularly strong in recent months with the price for Hardisty 12 degree API reaching a record $90.72 in April 2008.  The combination of strong production and high pricing will result in record revenue and cash flow for the first quarter ending April 30, 2008.
Current production is estimated to be 750 boepd consisting of 95% heavy oil and 5% gas and light oil production (not including the Vermilion Dina gas well).

Reserves
Sproule Associates Ltd. has prepared an independent reserve report, effective January 31, 2008 and a mechanical update effective April 30, 2008.  As at April 30, 2008 Athlone had proven reserves of 968.6 Mboe with a before tax value (NPV 10%) of $23.6 million and total proven and probable reserves of 1,628.4 Mboe with a before tax value (NPV 10%) of $35.1 million.
Outlook
Athlone possesses a strong balance sheet, with net debt of approximately $4 million at April 30, 2008 and a bank line of $5 million based on the January 31, 2007 reserve report.  An increase in the bank line is currently under review.  The majority of Athlone's properties are 100% working interest and operated with year-round access.
Considering the current commodity price environment, Athlone's recent drilling success and corresponding increase in asset value and growth potential, the board of directors has determined that conditions are favorable to consider a sale or business combination that will enable the Company's shareholders to realize the value that has been created by Athlone.
Interested parties are advised to contact Liam Balfour or Michael Shumlich at Jennings Capital Inc. (phone 403-292-0970).
About Athlone Energy Ltd.
Athlone Energy Ltd. is an active junior oil and gas exploration company with core assets in Alberta and Saskatchewan.  For further information, please refer to the Company's website: www.athlone.com or alternatively on www.sedar.com.
For further information, please contact:
Garry Lohuis
President & CEO
Athlone Energy Ltd.
Telephone: (403) 261-4791
Email: glohuis@athlone.com

The term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation.  A boe conversion ratio of six thousand cubic feet (6 mcf) to one barrel (1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The term "operating cash flow" does not have a meaning assigned under GAAP and represents cash flow generated from operations before deducting non-cash expenditures.
This information contains forward-looking statements (forecasts) under applicable securities laws.  Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment.  Many of these factors can be difficult to predict.  As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
===========================================================================
Copyright (c) 2008 ATHLONE ENERGY LTD. (TSX-V:ATH)  All rights reserved.  For more information visit our website at http://www.athlone.com/ or send mailto:info@athlone.com