sudden drop, page-3

Personally I think the last report is the reason.

You have a massive loan facility, which they somehow managed to breach the covanant's on. They didn't tell anyone until now, when they had to disclose it in the annual report.

Ok they got a waiver, but a waiver for what?

The loan term's obviously weren't quite as straight forward as Antares made out.

For all the hype about production rates and increased revenue, the company simply isn't generating enough revenue to reach payback on a well by well basis within a reasonably short timeframe ie within the 1 year they keep quoting - Yes the best wells will be the rest are not.

The issue seems to have first come up in August, when did drilling suddenly stop for no apparent reason - to us shareholders - late September.

Since then very little has happened drilling wise other than the robinson well. There is no sign of a pick-up in drilling activity. They have even resorted to projecting a future well for May that they only have a 20% WI in. The Debnam well has still not been fracced and they don't seem to have a firm date for it yet and are running out of excusses as to why its not proceeding, since they've already told us its going to follow the same process as the Cozart well.

The last presentation makes it clear they need to be continually drilling at the new SS lease area to comply with its term's, don't see any sign of that happening, worrying.

So very little money going out for the last few months and they have been paying down some of the loan, perhaps to get back within the terms of the loan. However they had good production level's then, they will be producing less now even with Cozarts.

What about the loan notes due in October? still $14M outstanding and I can't see them being in a position to pay that back from cash-flow unless they stop paying down the loan debt. The loan notes are more expensive, 10% coupon currently, so you'd want to get them out of the way as soon as possible.

How they had the gall to pay themselves 15% payrise and an 8% bonus is beyond me. Other than trying to fool shareholders yet again.

Maybe all of this is why they were projecting drilling so few wells in 2013, when all us shareholders could see was lots of available leases and a mega loan facility and expected them to be drilling big time.

Hence having to extent primary leases to 2018, at what will be a considerable cost to shareholders, but is being spun differently by the company.

I honestly think things are far from rosy with Antares, shareholders are being kept in the dark, the company doesn't want to come clean that's for sure, past history tells us, they won't either.

What I'd love to see happen right now is for the share price to drop to 39 cents for a couple of days, to see if the company goes into the market and defends the share price as it has done at this level in the past. If they don't come in and support it, then I'd say things are much worse behinds the scene's than they are letting on. Even if they have to use up the whole 7M allowance that's left and set-up a new 40 or 50M facility, it would show us that, things are not as bad as I'm suggesting.

To me there is now too much uncertainty, to many unanswered questions to have any view. So I'm going from a hold to no view right now.

Maybe this is behind Gentry's departure to??

I still can't work out what asset they own required a $16M writedown either.

Simply scary to say the least.

This quarterly report will hopefully shed some light on the company's financial position etc.

I hope everyone keeps there wits about them.

LOTM