article, page-2

Here it is. Notice the risk of this well was whether porous sands would be encounterest. Well they did and they were 100 foot wide.

This company's share price has real legs once the flow is initiated and ratified


ENERGY NEWS

Turnkey drilling contract signed for Rowena Wilcox prospect
Posted: 21 August 2007

San Isidro Development, the operator of the Shaeffer Ranch project, has entered into a turnkey drilling contract for the first well on the Rowena Wilcox prospect in Jim Wells County, Texas.

The name of the well is Jean H. Freeborn -1. Orion Drilling Company has committed to drilling the 16,000 foot well on a turnkey basis for a fixed cost.

The current plan is use the same rig that is drilling the Outlar-1 well in which Antares has a 30 per cent working interest (West Wharton). The rig would move directly to the Jean H. Freeborn-1 well after completing the Outlar-1 well.

"This is an enormous un-drilled structure in one of the most prolific hydrocarbon fairways in Texas," said Mr. Howard McLaughlin, Managing Director of Antares Energy Limited.

"We are very pleased to have a turnkey drilling contract as it removes great uncertainty in cost exposure."

"A successful well at Rowena will add significant value to Antares Energy through reserves and production."

Antares has a 50 per cent working interest in this project as does San Isidro Development.

The Rowena prospect is a massive 13,000 acre closure approximately 15 kilometres from the 200+ BCF Hostetter Field. Potential reserves for this feature exceed 200 BCF on a P50 basis.

If successful this project has the potential for large number of follow up wells.

Antares’ minimum financial commitment is anticipated to be approximately USD 2,750,000 dry hole cost.

Several US companies are currently reviewing the prospect and Antares may farm down its working interest to 40 per cent if favourable terms can be negotiated.

The main objective of the large seismic acquisition program recently acquired over Shaeffer Ranch was to confirm the presence of a large un-drilled four way structural closure at the Eocene upper Wilcox level. This structure had originally been identified from old 2D seismic lines.

This prospect is in a very attractive hydrocarbon fairway within close proximity to several large producing gas fields.

The 3D mapping confirmed the Rowena feature to be a significant and robust structural high with possible upside ranging from over 200 BCF (P50) depending on sand thickness encountered.

There is geological uncertainty in sand distribution due to the lack of nearby well control however this prospect is within 11 miles of the successful Hostetter field that has original reserves in the order of 100+ BCF.

Initial production from some wells on the Hostetter field is reported to be 16 million cubic feet per day (MMcf/d).

There is in excess of 15 producing wells on the field. In addition, Chevron has reported initial production from a nearby well of 17 MMcf/d from the Wilcox. There are other upper and middle Wilcox fields in the area that are of a similar structural style (see map below).

From a seismic perspective the section that contains the gas in the Hostetter field is very similar in character to the interval seen in the Rowena prospect.

The Hostetter field produces from a number of intervals to depths greater than 15,500 feet.