Antares Energy to Participate Texas Gas Prospect

Antares Energy has agreed in principle to participate in the drilling of a deep gas prospect in Wharton County, Texas to earn a 25% working interest. The prospect is a 16,500 foot (5030 meters) test of two lower Wilcox sands, with a combined reserve potential of 85 BCF (Billion cubic feet). The New Taiton prospect is defined by 3D seismic, and is being acquired through Mueller Exploration (MEI) of Corpus Christi, Texas.

The New Taiton prospect is a faulted rollover anticline structure targeting the prolific Wilcox sands at a depth of approximately 16,500 feet. The prospect is defined by 3D seismic and has strong amplitude and attribute responses. The prospect is along a trend of other existing Wilcox gas fields.

The timing for the drilling of this prospect is not set but expected to be within the next couple of months. Estimated dry hole costs are approximately USD 3.5 million (Antares share is USD 875,000).

Commenting upon the New Taiton farm-in, Managing Director, Howard McLaughlin, stated that:

"The participation in the New Taiton prospect is in line with our strategy of exposing Antares

Energy to high impact material prospects that in the success case will have a significant effect on our production, revenue and reserves. This is the first of a number of similar high value opportunities planned for drilling over the next twelve months. Details of additional opportunities will be the subject of further announcements as they are finalised".