Under the agreement, Antares will have a 23.5% interest in the drilling of Garcitas Ranch C-1, an initial 13,000-foot (3962.4m) well, to test middle and upper Wilcox objectives in the county.

Perth-based Anatres said the agreement covers a 2000-acre (809.4-hectare) lease with two gas prospects defined by seismic amplitude anomalies on good quality, re-processed 3D seismic data. Project potential varies between 45 billion and 75 billion cubic feet, it said.

“The Garcitas Ranch C-1 well is a relatively low-to-moderate risk, near-term drilling opportunity that augments our growing portfolio of south Texas projects,” Antares said.

“In the success case, this high-impact project will deliver excellent revenues and lead to drilling additional development wells.”

The company said Garcitas Ranch C-1 would test the crest of the seismically defined structure.

It will be drilled about 80ft updip from a 1987 discovery well, which flowed at a rate of over 10 million cubic feet of gas per day on test and had over 110ft of gross gas pay and 167ft of gross sand section.

The well is expected to be drilled in the next two months.

Texas-based oil and gas exploration company Hollimon will be operator of the project.