Ann: Operational Update - Permian Basin , page-3

Moneytree

Sadly No its not. (and yes I had those similar thoughts the 1st time I read the AGM presentation)

Antares likes to highlight the W&T offshore purchase price and the fact its leases are next to ours

However if you did a little research, or read all of my posts you would already know that very few of their purchased leases are next to ours. Less than 15% of the leases they purchased are in Dawson county.

As for this week's announcement I see they have not raised the Lonestar production number nor given a firm IP number for it.

With Antares being Antares that means to me that we are not going to get the 132 boed average IP expected from this well. The flow-rate from the Stuart well is also sadly lower than I was expecting from the lenght of time it has been cleaning up.

No news on the purchase price settlement adjustment either.

I suspect the company will curtail the buy-back for now as it is going to need to preserve cash to fund the drilling program in light of much lower oil and gas prices, especially as it has already committing itself to another 2 wells at Southern Star and as Antares has 100% WI in those wells that's another $4M gone from the cash pile plus the cost of the work over the other wells to take into consideration as well.

For the record I did buy back some of my previous holding this week (less than 50%) however in light of todays update, I have put all of the stock bought up for sale at a set sale price slightly above the current price. As I again feel that production numbers are not getting to the level I expected them to get to and that there is downside risk to the share price until Antares finds more productive fracing techniques.

Therefore I have gone back to rating it as a short term sell for now.

LOTM