Way Oversold, page-11

Sector Lead,

I agree, you do need to think ahead.

Breitburn are already warning of the debt facility review in April & what the consequences of that might be.

Given that, that was based on oil at $60 WTI & $65 Brent and a $3.50 nat gas price, I can't help but be fearful of this review even with Breitburn's hedge position. Every unhedged barrel is making $10+ less than expected right now. If the price doesn't pick up very quickly then things are going to be much worse for them.

The dividend will be stopped and they will have to fire sale assets or issue new stock to get back inside there loan covenants, neither of which helps Antares in the short or longer term.

Then think of how Antares will cope with no income stream other than very minor production to try & cover the loan notes, company running costs & salaries!!

Buying back the loan notes at A$2 is just dumb right now. Mark my words this will come back to haunt the financial engineer, who's actions have destroyed significant shareholder value in 2014 and look likely to continue doing so in 2015.

Anyone going near the stock right now until we get to see the quarterly report, is very brave to say the least and other less favourable words also come to mind...........

LOTM