West Perth-based Antares Energy Ltd's planned acquisition of a 55 per cent stake in the Group A acreage of its Kenedy Ranch properties will not proceed after the project vendor terminated its offer.
Antares had signed on in October to purchase the interest held by IPR (formally Santos USA's interest), increasing its ownership to 60 per cent.
The company, which retains a 50 per cent stake in Group B of the tenements, is currently evaluating its forward alternatives for the Kenedy Ranch project in light of IPR's decision.
The full text of a company announcement is pasted below
On 10 October 2007 Antares Energy Limited announced that it had reached agreement to purchase the interest held by IPR (formally Santos USA's interest) in the Group "A" acreage of the Kenedy Ranch properties. The Company now advises that IPR has terminated its offer to sell its interest in Kenedy Ranch to Antares. Antares is currently evaluating its forward alternatives for the Kenedy Ranch project in light of IPR's decision. This evaluation includes the option of drilling identified prospects in Group B in which Antares has a 50% working interest.
Background
Antares Energy acquired interests in a combined total of 10,872 acres 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' position in Kenedy Ranch remains the same today.
