5mmcf a day x 330 days x 75% interest x 4 wells x US$7.50 gross...

5mmcf a day x 330 days x 75% interest x 4 wells x US$7.50 gross per mcf = US$37M by my calcs.

At a $6 (say) net of production costs, that would be US$30M net to Antares each year.

However, this assumes several things:

1. Production stays at 5mmcf a day per well.

2. We need to factor in how much it costs to drill and fracture these wells. These deep drills in USA are very time consuming and expensive. That will require a very large investment before cashflow can flow at these figures.

3. Assumes gas prices do not go down from current levels.


It took them forever to drill Harrison 1, but they did get through Scott 2 a whole lot quicker once they knew what they were drilling into.

Will be interesting to see if they can get the cashflow from the initial wells coming in to fund the next wells without having to raise more capital.