EGM Response

You just have to look back & you'll see all the smoke & mirrors.

Monthly production updates - never been seen in I don't know how long.

Never informed shareholders of the strategy following the pulling of the $300M sale, or kept us fully up to date with what was really going on.

Even now they refuse to tell us through the ASX, what was said in an article from that Journalist over 10 days ago, they just have total contempt for shareholders.

Never sold any shares, why would you when your getting paid big salary's and bonuses no matter what, to live nice and comfy.

Taking all the success for the Eagleford when in fact, they just got lucky being in the right place trying for an Edwards play, when Petrohawk developed the Eagleford on there doorstep. If they had truly believed in the play they wouldn't have farmed out so many good leases for peanuts in the beginning.

Already looked at a USA listing, timing not right, really you just had a $300M offer for the properties what could have produced a better time for a listing than that !!!

Technical success - SS production hasn't increased since it was bought, as far as the public information goes, only 1 well at NS thus far has produced good production numbers.

Company doesn't have the technical expertise required at board level only 1 oil & gas person.

Still no explanation of how they managed to spend A$26.4M on less than 6 x $2M wells last year.

Company's had year's to get non exec's on the board but failed to address the issue even although its in breach of its own best practice memorandum. Argues against LoneStar from an AUS / ASX perspective in one line, then wants to use USA perspective in the next and ignore AUS / ASX.

Hmm what if Lone Star had made an offer for our shares, the board would reject it as undervalued, because I distinctly remember a quote from several years ago which was along the lines of "we have all the tools necessary at our disposal to realise the true value of our Permian assets and achieve a share price for our shareholders of A$1 by end of 2012, A$1.50 by the end of 2013 & A$2.00 by the end of 2014" (or was it from end of 2011-2013 instead).

Either way the Directors of the company failed shareholders completely in this regard, they promised it & haven't got near delivering it no matter what they say. End of story.

Time for change I feel, I'd actually rather hold onto my shares and give someone else the chance to unlock the true value of the assets than get an offer that might be higher than the current share price but no where near the true value.

Maybe Lone Star could get that other company that they have a reasonable holding in & Antares to set up there own joint venture frac crew & drilling crew just like Pioneer have, that way it would dramatically lower our cost base by maybe $600,000 per vertical well or a saving of $300M+ to us for full field development.

LOTM