I thought I'd share some thought's with you regarding the...

I thought I'd share some thought's with you regarding the company.

Reading a number of the posts on here it is becoming obvious that the company has a credibility problem with a considerable number of investors both past and present.

Until the company engages with ordinary people again and regains there confidence, it is going to struggle to perform as it should.

So far I dont see the company truely trying to do this, when it started its Permian Basin purchases and announcements I thought they had changed there stance and were going to be proactively informative towards shareholders and potential shareholders, as we have all seen this has simply not happened.

Perhaps part of the reason was revealed in Loogs post the other day, the company really wants a USA shareholder base and listing and as such may not be to concerned about keeping shareholders from other countries fully onboard.

One issue that continues to annoy me is the cash bonus the directors paid themelves last year in light of the Eagleford Sale. This was a massive pay-off and for what.

They got lucky in just happening to be in the right place at the right time when suddenly the Eagle Ford shale became the hot play and was located below their leases. As for the actual sale price I'd like to know just how much of an uplift they achieved over the initial unsolicited approach price? and going by the figures the CEO was quoting. I doubt it was very much of a rise which made me wonder why exactly they would want to sell it when they kept telling everyone how much it was going to be worth and how well it was performing.

The truth finally emerged when sales document was published, it revealed that shareholders had been given what you might call "selectively accurate information", since no-one had revealed until then that the FD2 well had actually only managed to complete about 50% of the intented frac stages etc.

The company also refused to say just how much of the Petrohawk term leases it held on a WI basis, they allowed the brokers to publish a figure of 50% and posted the link to such information on the company website. They even marked some of the ASX announcements as price sensitive regarding the increase in the size of the term lease area.
When it finally released some detailed information on it, it showed that the term lease WI is somewhere near the 5% mark. One tenth of what everyone expected. I had valued those leases in the $10's of millions, all of which was wiped out in a stroke.

The best laugh was that one of these "price sensitive announcements" actually meant the addition of all of 49 acres.

The company got away with such dubious practices.

As to now, I'm sure everyone who reads my posts thinks I'm totally negative on the company, I'm not just on the way the company acts.

Before saying any more I need to highlight the fact that the WTI oil price is no longer a benchmark price, the difference between it and Brent Crude is now massive and will have major implications as to Antares revenue for the next 2 years as well as all other companies who have major USA onshore production, until they build new pipelines to take crude from Cushing to the Gulf coast which should then re-balance things.

Looking at the initial information on the Permian Basin, I actually believed it was possible for Antares to comfortably achieve its 1st price target of $1 a share by Christmas 2011.

So long as it kept to the schedule, the wells performed as expected and investors were given accurate and informative information on production rates etc. So as to keep the company in the news and regain investor confidence.

They haven't done so, there are just so many unanswered questions regarding the existing wells and the new wells and because of the companies past record, investors simply will not give them the benefit of the doubt anymore.

Which is the exact line I'm taking.

The company can try and hide the information from investors, however 2 months in arrears the Texas RRC website lets anyone who researches it see the true reported numbers etc, its on this information that I'll make my investment decisions, until I truely believe the company has changed its ways.

You may ask why I bother with AZZ, well I do believe from all the research that I've done that there is potentially massive value here.

If the directors want to achieve their targets and get all those other juicy bonuses, then its time for a complete change of tack and engage with shareholders and give them informative information on the thigs that matter.

LOTM