If you are reading this then I would like to take this...

If you are reading this then I would like to take this opportunity to thank you (the directors) for providing us (the shareholders & potential shareholders) with this very detailed production report.

I would go so far as to describe it as a historic event in the life of Antares Energy. A watershed moment in the company’s history, hopefully the start of openness and transparency by the company from this day forth.

The significance of this document should not be missed or underestimated by existing shareholders, nor potential shareholders.

I won’t yet call it the drawing of a line in the sand, although the stick is firmly in the sand and is hopefully ready & willing to draw that line in the sand.

I say that because the boed number’s in the report, maybe headline grabbing to some, but frankly speaking are more of a nuisance than a benefit and don’t build credibility for the company whatsoever. Yes the note on page 1 explains everything clearly and yes lots of other companies calculate boed in the same way. However the price of Oil is over 25 times that of Natural Gas and with the way the USA Natural Gas market current is, it will be along time before the ratio falls below 15:1 again.

The company highlight’s Southern Star Average Well Economics in its presentations and uses a credible oil price of $95 in its calculation, yet for Natural Gas instead of just simply using MCF produced, it does it by BTU’s instead.

Now the current market price for Nat Gas is around $3.50 per MCF. Apply that to Southern Star gas with a 40% premium in its heating content and the $5 average price used in the calculations is certainly credible ($3.50 + $1.40 = $4.90). An average BTU price in the calculation of $5 per 1000 units is simply not credible (as I see nothing to drive the average price up by 40% in the short to medium term with high gas in storage levels and record natural production).

So please drop boed numbers from the reports for the sake of transparency and the company's credibility or if you still have a strong desire to report them, then please limit them to an oil to gas ratio only (preferably using a 12:1 rather than 6:1 ratio again for the sake of transparency and credibility)

The only other change I’d like to see which is a continuation of the above is that on individual wells & leases that current production is given as BOD & MCF a day instead of the dreaded boed.

I look forward to reading the next production report, it would be helpfully if it was issued on the same day each month, so that everyone knows when its going to be issued.

LOTM