Implant, If your a top twenty holder of ordinary shares, you...

Implant,

If your a top twenty holder of ordinary shares, you should be very concerned about the loan note situation. Company is now paying $6M in interest payments a year on these notes.

Production is way down & no sign of them getting it back on an upward curve within 3 months, they'll need a miracle to get to 3,500 boed by next sept, nevermind that 5,000 boed target. By then cashflow will not cover the outstanding loan note debt, which is headed for 100M+ as soon as they actually start drilling again.

So the loan note holders will squeeze the company, into a 4 for one conversion rate & maybe a 12% coupon rate, result - upside for existing shareholders is very limited due to dilution.

The existing directors are praying/hoping that those roundabout them achieve results that they themselves cannot achieve on a consistent basis, in the hope of someone offering more than the $300M they walked away from.

Yes Lonestar is a $100M fund, it hasn't got the resources to bid for Antares currently, I don't actually think they want to do that anyway, even if they did bid, lets say $0.70 a share who's going to accept it? probably not enough shareholders for it to pass. I actually think they want to be there long term & extract the value from the asset, which should benefit all shareholders even more over time.

However until someone can get to see the books & the actual lease terms, I fear even there strategy might not work.

Yes most of Southern Star is held by production, but no one else seems to have noted or have just avoided talking about the 4,000 net acres or 25% of the big star holding that just disappeared last quarter due to expiry of the lease terms. How long until more expires?

Which totally contradicts the latest convertible loan note issue, which says the funds raised are for development of the 3 project area's.

Smoke & mirrors are never far away from Antares, the smaller the holding the less attractive the package is to the bigger players. Do you think someone is going to pay $300M for the Permian holding now?

Quite frankly the current board of directors don't have the correct skill set's, never have, not enough proper oil & gas people running the company.

Is Lonestar the answer? I'm not sure, but I'd rather give them a chance to prove to us that they'll communicate the true facts, than whats currently happening. You simply can't make investment decision without them.

LOTM