Callon deal good for AZZ Valuation

"Key attributes of the Big Star transaction include:
Approximately 17,298 gross (14,089 net) surface acres, primarily located in Howard County, Texas, with
additional acreage in Martin, Borden and Dawson counties, Texas;
178 gross (165 net) identified horizontal drilling locations targeting the Wolfcamp A, Lower Spraberry and
Wolfcamp B zones which are currently producing on the Big Star acreage and directly offsetting fields, using
an initial assumption of horizontal development with six to eight wells per section;
Largely contiguous lease positions allowing for average lateral lengths of over 8,300 feet;
Five currently producing horizontal wells, including three Wolfcamp A and two Lower Spraberry horizontal
wells with average 30-day peak production rates of 1,165 barrels of oil equivalent per day ("Boe/d");
124 gross (112 net) additional potential horizontal drilling locations targeting the Wolfcamp D (Cline) and
Middle Spraberry zones which are producing from surrounding fields in Howard County;
Estimated net daily production of 1,931 Boe/d (82% oil) for the first quarter of 2016; and
Approximately 4.1 million Boe (71% oil) of net proved developed producing reserves as of January 1, 2016,
based on our evaluation and interpretation of reserve and production information provided by the sellers, as
well as our analysis of available geologic and other data. We cannot assure you that this estimate is accurate.
Our estimate of proved reserves has not been reviewed by our independent reserve engineers, and we may​

revise our estimates following ownership and operation of these properties."

Big Star are one of the operators that may still be operating AZZ wells.

From the 31/12/14 Q Report Appendix 5B . I note that :-
The Big star field had 2,117 acres added, the then total was 13,199 acres,
The Northern Star field had 6,158 acres added, the then total was 11,049acres .
So on a standard 3 plus 2 lease arrangement. The assumption would be that AZZ have got
at least 8,275 acres plus up to 24,428 acres under lease'

Interesting that 5 fairly long horizontals are producing, combined, around 1900 Boe/day.
With very good initial 30 day rate.

Antares Energy leases are not rubbish, just undeveloped by current management whom are finance orientated.
The good directors who were savvy with the area left. They were production orientated.
Some silly stuff went on:- issuing more notes, buying back notes and shares, fiddling with offers, fighting off vultures,
The end result the eye was taken off the ball.
Those former directors now have US$100M to spend.

Who knows??? but with WTI around $44, things are on the improve for the stars.
Deals are being done in counties close by to AZZ leases

The price of oil and time will tell.

And the hope that the Note Holders don't force the company into administration on Friday 29/4

If that happens, everybody with interest in Antares Energy, looses.
Only the Vultures and mean spirited will get their jollies.

Cheers IFINO