agm vote management out , page-22

stlamc,

I'm sorry but I do have to correct you.

You have been taken in with this 1400 boepd number, this number is currently calculated by Antares on a BTU basis. That is British thermal units = 1024 per 1000 cubic feet of gas.

By using this calcualtion it inflates the BOED figure considerable because there gas is 1400 BTU per 1000 cubic feet so the amount of actual gas produced is then incresed by 40% to get to there numbers.

The numbers that Antares produce each month are to there working interest holding in each lease, to which you have to deduct 25% for land owner royalties. ie WI % verse actual NRI %

When you take all of the above into consideration you will see that my caluclation are correct.

Feb oil was 19,000 barrels gross, take away 25% and you are around 14,500 divide by 29 days in the month and you get 500 bopd.

Do the same for the actual gas number and you will get Antares net gas production, divide it by 6 and add to the above and you get Antares true daily NRI production on a BOE basis.

The slides you are refering to in the November presentations are for the well as a whole you need to deduct the 25%. Some of the slides show $2M in year one for the whole well on there decline curve, but actual revenue to the WI partners is only $1.5M and it takes much longer to get that other 0.5M back.

Some of the wells are not reaching the performance expected by the company so payback is delayed further and they used a high Nat Gas price in the calculations. You will also have seen all the holds up in getting wells producing and tied into pipelines etc all of these delays hold back the point where the wells break even.

The good news is they will most likely be profitable for more than 10 years as well.

The wells at Big Star show no sign of ever reaching break even yet and the company is free carrying Big Star oil and gas for 15% on every well as well. They have lost a few $M there so far.

Northern Star jury still out but not looking as good as it did originally.

The 80% you refer to relates to revenue being from oil and NGL which is correct, not production

The real worry is that so many people by rating your post seem to agree with you and no-one else seems to be prepared to correct the obvious errors in your posting.

Too many taken in by what the company says without reading the fine print of there announcements.

LOTM