edwards limestone, page-11

Antares will be able to use the edwards test results to enable roche to book gas reserves for the 2600 acre edwards limestone trend.

For example if the well flowed at 1.5mmscfgd at current price of $3.18 per scfg there is no way the company can make money from that but there can be an estimate created of gas in place.

If the price is $6 or $7 per cfg (or above) like when they looked at the project in 2006,then you can make a good margin.

So why waste time and extra cash on extented flow tests etc on something that dosent make economic sense today.

So like every other player in the area,gas production with high condensate levels is the only way to make money in the current environment.

The eagle ford economics are still robust at todays prices if the condensate content is sufficient.This is why petrohawk is increasing their development pace in this play.

Building sufficient 1p and 2p reserves in the eagleford is the only way antares will be able to obtain debt funding in the current environment and increase their own eagle ford shale development programme.

Hope this helps.

All the best.