strategic update, page-13

Cloak,

Please take the rose tinted glasses off, the decline curve of the Horizontals is going to be faster than for the Vertical wells.

The good wells will reach payback inside 1 year, but it is really capital intensive, they won't be debt free I'd say for at least 30 months maybe even 40 months depending on the intensity of the drilling campaign and the flow rates.

Looking at Lynden Energy Corp, they might have been able to improve there position, as they could have bought it and still had all the cash required to develop it as well.

Other than that, I agree they are likely to make more money in time than that offer price.

The question thou becomes one of funding, production is much lower, no where near there target numbers and I those who are ordinary shareholders now don't get offered the loan notes then they will get screwed- mark my words.

They need to get production up and costs down.

I also agree the CEO has a vested interest in the Ord shares, which alarms me even more, the fact he is even considering issuing the $70M of loan notes, when he owns so many ord shares is mind blowing. I don't think he has thought through the future implications of such debt yet, if he does then he is likely to back away from it. But thee again this is Antares.

LOTM