Mapped using 3D seismic, each prospect contains a reserve potential between 38 and 225 billion cubic feet of gas targeting the Lower Frio sands, said Antares managing director Howard McLaughlin.
"This is a very exciting area with multiple high-value gas prospects," McLauglin said.
“We will increase our working interest in the remaining prospects as we gain more knowledge and reduce risk,” said McLaughlin.
“As with the recently announced New Taiton prospect, this drilling program will expose Antares to a number of high impact prospects that if successful will dramatically increase the value of our company.”
Antares will have a 5% working interest in the first three prospects (Group A) and a 25 to 50% working interest in Group B.
Santos will operate the projects. It will have a 55% stake in the Group A blocks and has the option of acquiring a 35% working interest in Group B.
The remainder of each block is held by the Lamay Group, a consortium of US private interests.
The largest prospect, the Frio R Deep, has an estimated reserve potential of 225 BCF and will target sands between 4572 metres and 5181 metres. It has estimated dry hole costs of US$6.5 million and completion costs of US$2 million, upon gas discovery.
Santos is reportedly planning to spud a well on this prospect in early 2006, said Antares.
The company says the first well carries the highest technical risk and well costs, due to drilling depth and pressure.
Managing Director Howard McLaughlin said Antares’ strategy was to initially enter with a low working cost for the higher risk targets.
Joint venture partners in Group A are: Santos (operator – 55%); Lamay Group (consortium of private US companies – 40%); and Antares (5%).
In Group B, Santos has an option to buy 35%, Antares has 25 to 50% working interest, while the Lamay Group will have a 40 to 50% stake.
Executive director James Cruickshank told EnergyReview.net that Antares had lined up a strong inventory of possible joint ventures in Texas and Oklahoma.
"I think people will be surprised over the next few months when we they see who our joint venture partners are," he said.
"We are talking to some companies that have a lot of credibility."
