drilling commenced - i buy, page-9

===THE EAGLE FORD SHALE PLAY===

--Petrohawk in the Eagle Ford shale--

1. Petrohawk has been successful in acquiring over 160,000 net contiguous acres in the Eagle Ford shale in LaSalle and McMullen Counties. 2, This represents a resource potential of 5.2 Tcfe and over 1,500 drilling locations with per well ultimate recoveries ranging from 4-7 Bcfe with an average estimated ultimate recovery (EUR) of 5.5 Bcfe.

3. The Eagle Ford is a highly calcareous organic shale beneath the Austin chalk with very high average total organic content (TOC), gas-filled porosities in excess of 10% and very low water saturations.

4. Petrohawk has estimated that free gas in place per section (1 section = 640 acres) to be between 180 and 210 Bcf.

--The highest quality shale reservoirs--

1. This data suggests, the Eagle Ford shale in this particular area is one of the highest quality shale reservoirs discovered to date in the United States.

2. Economics of the Eagle Ford shale are robust.

2.1> Preliminary data suggests the finding and development costs to be on par, or better, than several well known shale plays; the Barnett Shale and the Haynesville shale.

2.2> According to the equity research arm of Raymond James, assuming a $6MM well cost and the three year historical gas prices, the play generates an internal rate of return of over 100%.

3. Furthermore, ConocoPhillips (NYSE:COP) has recently announced that it has amassed a 300,000 net acreage position in the Eagle Ford in South Texas, Pioneer Natural Resources (NYSE:PXD) also has over 300,000 net acres, while St.

3.1> Mary Land & Exploration Company (NYSE:SM) is acquiring up to 210,000 net acres realizing the potential of this new resource play.

--Yellow Rose and Eagle Ford--

1. Antares is encouraged about the above activity adjacent to its 8,200 acre Yellow Rose position and will thoroughly evaluate the Eagle Ford Shale in its initial Yellow Rose well.

2. Based on an 80 acre spacing and a 4 Bcfe per well EUR (lower end of the stated estimated range), Yellow Rose represents a gross resource potential of over 400 Bcfe and 100 drilling locations.

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Then it seems the potential and the underprice caused by the crisis push the price up!
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