santos us interests sold., page-2

"An extract from Quarterly report to 31 December 05"

Antares Energy will have a 5% w/i in group A which covers 7087 acres and includes 3 initial prospects.

Santos USA is the operator of group A,with a 55% w/i.
The Lamay group,holds the remaining 40% w/i in group A.

Antares energy and the Lamay group have a 50% w/i each in group B which comprises of 3785 acres.

PLEASE NOTE """Santos USA has an OPTION to aquire 35% w/i in group B."""
Should Santos exercise this option ,Antares and Lamays interests would reduce to 25% and 40% respectively.

Santos had an internal pre-requisite of 100BCF gas net to them.

ONLY 1 prospect in group A fullfilled that criteria KMF-228-1.

With 4 prospects in the Kenedy Ranch area A and B remaining,ranging from 30-120BCFG in size.
Dont be surprised if the new owners are not as selective as Santos.

All the best.