Three million in admin fees for a quarter just doesnt happen in...

Three million in admin fees for a quarter just doesnt happen in a company of this size,unless there are significant external costs(ie legal fees).

The midland basin is such a great play for Antares because of the following,

Tradionally much of the midland basin was a spraberry play,fairly shallow.

In the last 5+ years they started drilling deeper into the wolfcamp with verticle wells.Today they drill deeper still.

The other previous zones of interest wolfcamp,cline,atoka,mississipian and others do not share the same aereal extent as the spraberry.

As pioneer natural resources hold 900,000 acres in the spraberry field,and there are 200-300 operators in this area,much of the land is leased or held by production.

This is prohibitive for companies to build large continuous acreage positions.

As the spraberry thins towards the southern end of the midland basin much of this area had little or no spraberry production as the economics were marginal.

In fact due to previous shallow drilling, counties such as Crockett were not considered to even be part of the midland basin.

Once some further deeper exploration was done it gave companies an opportunity to build large holdings in the southern counties like Crockett,Iron,Reagan,Upton which in fact had very thick wolfcamp pay.

This is why the horozontal wolfcamp play has started at the southern end of the midland basin.

As with the wolfcamp,the cline,missisipian and others continue outside of the traditional spraberry boundaries.

This is why companies are building acreage in new horozontal plays outside of the tradional spraberry boundaries,because they can get large parcels of continous land at much cheaper prices(which are not already leased or held by production).

As the wolfcamp is quite uniform through much of the permian basin,Antares current acreage is all prospective for horozontal wolfcamp and possibly cline production.

As learning is a large part of business success,Antares are are taking the correct path with observing competitors to derisk Northern Star and Big Star by them drilling in close proximity to Antares large continuous acreage positions.

Companies wishing to participate in the wolfcamp and other stacked horozontal plays will need to consolidate other companies positions creating significant value over the ensuing months and years.

With no immediate lease expiry issues on northern and big star,the methodology of pursuing additional leasehold positions with current cashflow and credit facilities seems very prudent indeed.

Look to the AGM for further announcement of pending/finalised aquisitions.

All the best.