end of march - true company situation, page-8

Cloak,

Please see sense and take off the rose tinted glasses for once for your own good.

The company didn't make a profit, it wrote back $20M that it had previously written off as part of sorting its accounts for tax purposes etc expecting the sale to go through which it didn't.

In the next half year report and annual report it will have to reverse that transaction, which will make the accounts look worse than they actually are, or restate the 2013 end position since no sale occurred.

As you can clearly see the debt hasn't been paid down & the massive cash-flows that you said were going to fund all this drilling simply aren't there.

Yes I accept that there were some restrictions on the amount of oil & gas produced due to outside factors, but overall it would not have made that much difference overall, just added $2-3M of cashflow and under $1M to profits.

The company wants you to think it made a bigger difference than it really did, to hide the poor performance.

The real shock and question that those who truly believe this management team can deliver the goods, is simply this.

How can you possibly spend $23.2M (actually $26.2M less a generous $3M for future prepayments) on the drilling and completion of 5.5 vertical wells, lets call it 6 to be generous.

That works out at virtually $4M a well. Double the cost they are meant to be. That's why there is no reduction in debt levels.

Personally I don't think shareholders have any confidence in this board of directors and very few support them.

Something everyone might want to look at, was the reserve report, future net cash-flow (not profits) is projected to be $1.6 Billion, yet the discounted figure is a mere $282M, which is less than the sale price. That really makes me wonder, just who stopped the deal.

I suspect the broker reports will be lowering there valuations quite a bit going forward.

We will in a few days time get our first look at what Antares continues to not talk about, actual production numbers from these new wells that made them change there minds on the sale. Yes they will have to be adjusted somewhat to account for the poor weather.

LOTM