Antares Energy Limited : Operational Report

A.C.N. 009 230 835

Ground Floor, PO Box 690

63 Hay Street West Perth WA 6872

West Perth WA 6008 www.antaresenergy.com

The Directors of Antares Energy Limited (ASX:AZZ) advise of the following operational activities conducted in the company's core Midland Basin producing assets.

Cozart 11 No. 1 was successfully fracture stimulated from the Jo Mill to the Woodford Shale reservoir intervals with the emplacement of over 200,000 lbs sand per stage in the Wolfcamp. The well is pumping to tanks with 42% of fracture fluids recovered and a weak gas blow. Initial production rates will be the subject of future announcements.

Pettaway No. 1 was successfully fracture stimulated last week in reservoir intervals from the Jo Mill to the Woodford Shale. The well is currently being prepared to acidize a final zone in the Clear Fork. After acidizing, the well will be flowed back from the Clear Fork to assess productivity of these Leonard age carbonates. Following this assessment, the kill plug will be drilled out on the deeper frac stages and flow back initiated through flow back plugs. The
production battery and gas pipeline hookup are in the final stages of work. Initial production rates will be the subject of future announcements.

A blockage due to composite flow back plug fragments in the liner hanger above the sliding sleeve frac stages was discovered recently and removed. Debnam 22 No. 1 is currently being brought back into production.

SLKT No. 1 was successfully fracture stimulated the third week of December 2013 in reservoir intervals from the Jo Mill to the Woodford Shale. The well is pumping to frac tanks with 36% of the fracture fluids recovered and an increasing gas blow. The production battery and gas pipeline hookup are in the final stages of work. Initial production rates will be the subject of future announcements.

The Barnes No. 1 was successfully fracture stimulated the first week of January 2014 in reservoir intervals from the Jo Mill to the Woodford Shale. Composite flow back plugs are being drilled out and the well will be rodded up for the pump jack. The production battery is complete and awaiting gas line hookup. Initial production rates will be the subject of future announcements.

Robinson No. 2 has undergone production logging as high water production was preventing normal production on the well. The Strawn water source perfs have been successfully cement squeezed and the well is being brought back into production. Post remediation production results will be the subject of future announcements.

Following pump remediation and removal of frac sand from the lower perfs in Robinson No. 1 in November 2013, the well set a single month production record of 7,692 BO and 13,839 MCF (9,999 BOE). Production logging of Robinson No. 1 indicates 68% of current oil production is coming from the Jo Mill to Wolfcamp stages with the balance deriving from Strawn to Lower Mississippian stages. This result corroborates the recent increase of Wolfcamp horizontal drilling in leases due east of the Northern Extension and HBP footprint.

Southern Star Area - Wolfcamp Horizontal Update

Recently, five new Wolfcamp horizontals have either begun drilling or been permitted by Element Petroleum and Tall City two to four miles due east of the Southern Star HBP and Northern Extension area. Initial production results are being held tightly by Element but the uptick in
lateral permitting and drilling by Element suggest significant results in the Wolfcamp objectives.
In Antares' 4,452 net acres footprint, twenty 5,000 to 6,000 foot laterals can be drilled for multiple objectives in the Wolfcamp A, Wolfcamp B, and Wolfcamp D. Depending on the final length of
the lateral, drilling and completion costs range from $5.5 to $7.0 MM.

For further information please contact: James Cruickshank Chairman & CEO
+ (61) (0) 488 222 122 or + (1) 214 762 2202

Antares Energy is an oil and gas exploration and production company focused on the Permian
Basin, West Texas, United States of America.
Currently Antares has three core projects being Southern Star, Northern Star and Big Star each located in the prolific Wolfberry Trend of the Permian Basin.
Antares Energy is an Australian public company listed on the Australian Securities Exchange
(ASX) under the ticker symbol AZZ.
For more information please visit our website found at www.antaresenergy.com.

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