may production report

This should be a very interesting report to say the least.

April's production was 18,759 BO and 56.981 MMCFG

Having read through all the weekly announcements and such like May's production numbers should be at least double those of April.

Anything short of 38,500 BO will be vastly disappointing and anything over 40,000 BO encouraging.

Natural gas is a little harder to judge as some production was shut-in from April etc, but should be around the 120 MMCFG mark.

I have been waiting on this report as I considered it an opportunity to review the companies outlook and possibly start to increase my share holding if the actual data proved compelling.

However as everyone knows oil prices have dropped considerably over the last few weeks and its effects on Antares should not be forgotten, as it may be several months if not longer before prices recover.

If you look at the company presentations they use $85 a barrel and $5 per BTU MCF of gas to show yearly sales revenue, regarding well break even points etc. Both are now under water.

The $20+ drop from before will have knocked $1M a month of Antares bottom line.

The plus side maybe the stress it will cause others and thus the price of other leases may drop considerably and quickly.

LOTM