Antares to sell West Texas projects for $US300m

Antares Energy has sold its Permian Basin oil and gas assets in Texas to an undisclosed buyer for $US300 million.

The West Perth-based company announced today it had signed a binding letter of intent to execute a purchase-and-sale agreement for its Permian assets within 60 days.

The assets include the Southern Star, Northern Star and Big Star projects, located in West Texas’ highly prospective Wolfberry trend.

The projects hold a combined probable reserve of 51.6 million barrels of oil equivalent.

The Southern Star project, which Antares acquired in 2011 for $US61 million, has 49 producing wells.

The Permian Basin is becoming one of the most sought after oil provinces in the US, with international giants BHP Billliton, Apache Energy, Chevron, Exxon Mobile, among others, holding significant projects.

Projects in the basin produce an estimated 1.3mmboe  of oil each day.

Antares said it expected to finalise the transaction by mid-January.

Antares chief executive James Cruickshank is being sought for comment.

At 10:15AM, WST, Antares shares had dipped 5.4 per cent, trading at 52 cents.