West Perth-based hydrocarbon exploration company Antares Energy Ltd has boosted its stake in the Kenedy Ranch project from five per cent to 60 per cent the company has announced.
West Perth-based hydrocarbon exploration company Antares Energy Ltd has boosted its stake in the Kenedy Ranch project from five per cent to 60 per cent the company has announced.
The full text of a company announcement is pasted below
Antares Energy has reached agreement to purchase the interest held by IPR (formally Santos USA's interest) in the group "A" acreage (7,087 acres) of the Kenedy Ranch properties. This increases Antares working interest in group A from 5% to 60% and the 50% in Group B (3785 acres) remains unchanged.
Antares will assume operatorship. This change will now facilitate the testing of the potential gas sands encountered in the KMF-228-1 well drilled in 2006. An additional exploration well is also planned for drilling early in 2008.
Background
Antares Energy acquired interest in a combined total of 10,872 acre in Kenedy County, Texas during September 2005. Antares Energy chose to participate at a 5% working interest in three prospects (Group A) and a 50% working interest in the remaining portfolio of prospects (Group B). Santos USA was the operator in group A with a 55% working interest. The Lamay Group, a consortium of private US companies, is participating for 40% working interest in Group A and a 50% working interest in Group B.
Antares decision to only participate for 5% in group "A" was to limit our exposure to a deep and expensive well planned by Santos, that Antares believed had a low probability of success. The KMF 228-1 well was drilled to a depth of 18,200 feet but failed to find reservoir in the deeper objective. Shallower Frio sands with strong gas shows were encountered between 12,000 and 15,000 feet. Santos was unwilling to participate in the testing of these shallower sands and ultimately sold their USA interests to IPR.
Group A & B prospects range in size from 20-150 BCF and have target depths varying from 13,000-16,000 feet (3,960-4,900 metres) for the main objectives. Several of these features also have secondary shallow objectives on-trend with previous discoveries and fields.
Mr. H. McLaughlin, Managing Director of Antares said:
"Our initial strategy of limiting our financial exposure to a prospect we felt was unlikely to be successful was proven correct. We have subsequently been pursuing the Kenedy Ranch interest Santos held for some time and finally reached an agreement to purchase these interests from IPR who recently finalised the purchase of Santos's USA business interests We believe there is significant remaining potential in this acreage for a number of new gas discoveries."
