OilVoice - Antares Energy Increases Interest in Yellow Rose Project

Antares Energy Increases Interest in Yellow Rose Project

Thursday, October 15, 2009

Antares Energy has increased its Yellow Rose project working interest in 18,274 Eagle Ford shale acres from 50% to a 75% working interest. Previously, Antares held a 75% working interest in 1,280 acres and a 50% working interest in 16,994 acres.

Antares now has the right to own up to a 75% working interest in the total 18,274 acre Yellow Rose project. San Isidro Development Company will own the balance of the working interest.

Additionally, under terms of this agreement an approximate 5 mile, 8-inch gas pipeline capable of delivering over 60,000 Mcf/d will be built on a 50:50 basis to sell gas produced in the Yellow Rose project area. Based on the results to date from the horizontal drilling of the Frances Dilworth No. 2H, negotiations have begun in securing gas pipeline easements and bids have been requested for the placement of the 8-inch gas pipeline.

Including the 8,558 acre Petrohawk term assignment acreage, Antares has an interest in over 26,832 Eagle Ford shale acres. Given the robust economics of the Eagle Ford shale, the acquisition of additional acreage is seen as adding tremendous shareholder value.