strategic update

Wow interesting market reaction from those that were looking to make that quick $

No wonder some company made them an offer to take all of the convertible loan notes. 10% coupon and convertible at 66.6 cents a share. Where else would you get such generous terms?

Full issue would mean mega dilution for existing shareholders, if they ever get the project working as it should do. Which call's into question 2 other strategy's the share-buyback, why buy-in shares if its costing you 10% in interest per year and the funds can convert at 66.6 cents into another share.

Also the company has failed to achieve the $1 per share target for 2012, or the $1.50 target for 2013, its chances of making $2 by end of 2014 look remote barring a miracle. So they are not really working for ordinary shareholders, but are feathering the nests of the loan note holders who they have bend over backwards to please. And if in 20 months time they have not got rid of all there debt's, they will be at the beckoned call of the note holders, who can demand a higher rate of interest and better conversion terms to grant them more time, thus the ordinary shareholder is completely stuffed again.

Yes they have had some good wells, but just look at the production rates they have now, most of the cash-flow is coming from only a few wells. What's happened to the rest of them?

As for horizontal drilling, Antares didn't distinguish itself with its drilling in the Eagleford did it?

With its current low level of overall production and horizontal wells at $7.5M+ a shot +3D seismic to pay for, it will be burning cash bigtime to start with, any errors or poor results will affect things massively.

Yes they had a really good well at NS but there again the next well that was meant to follow the exact same procedures has performed poorly to say the least.

Antares has no in-house expertise so everything is going to be done by 3rd parties which is far more costly as well.

If you want to play it then the loan notes is the way to go - forget the ordinary shares.

But they are going to have to get ordinary shareholders onboard so should be offering loan-notes to them 1st of all, as well as promising a much more open and transparent company going forward, otherwise no-one is going to touch them with a barge-pole.

What was that boast of there's before, oh yes this company has never failed to complete a closing, well it has now

LOTM