Following yesterday's weekly update I thought I'd post a few...

Following yesterday's weekly update I thought I'd post a few comments regarding the Northern Star Project Area.

Yes the Cozart 19 well results are certainly worth noting, encouraging enough for me to move from a sell position, to a hold position for now, with a positive outlook.

I can't go any further than that for now because of Antares past reporting history, both in the Eagleford and here in the Permian Basin. Factual data is required to change peoples views on the company going forward.

So far the results for Cozart 19 are very encouraging, but there is simply not enough data to know if this well is going to do good numbers for just a short period of time, or for a long period of time.

The company has previously reported good initial numbers for some of the other wells at Northern Star, only for the official numbers to show that such production rates were very short lived indeed.

Another fact that needs to be taken into consideration is the fact that Cozart 19 is located on the very Western edge of the Antares lease position so there is no guarantee that such productive zones extent into the heart of Antares lease position. The Debnam well is also located on both the Western & Southern edges of the lease position, which is a pity in many ways.

The company has also stated that this well was given the largest stimulation thus far. How much more did such a proceedure cost? its important to know this from a profitability perspective. Especially as the EUR's for Northern Star are currently projected in the 125,000 - 175,000 BOE range rather than 200,000+ at Southern Star.

The good news is the high percentage of the production that is oil, which should help the revenue numbers.

I will certainly be watching this space with interest over the next few weeks as hopefully more data becomes available especially things like the 30 and 60 day total production number's. It will also be interesting to see how Debnam performs which is about 1 mile south of Cozart.

We all know how good Ray 5 was, yet the offset wells Ray 3 & Ray 6 failed to be anywhere near as productive, so will Debnam show us somthing different?

LOTM