Sydney - Wednesday - Oct 10: (RWE Australian Business News) - Antares Energy Ltd (ASX:AZZ) has reached agreement to buy the interest held by IPR, formally Santos Ltd's (ASX:STO) interest, in the group "A" acreage (7087 acres) of the Kenedy Ranch properties in Texas, USA. This increases Antares' working interest in group A from 5pc to 60pc while the 50pc in Group B (3785 acres) remains unchanged. Antares will assume operatorship. This change will facilitate the testing of the potential gas sands encountered in the KMF-228-1 well drilled in 2006. An additional exploration well is also planned for drilling early in 2008. Managing director Mr Howard McLaughlin said, "Our initial strategy of limiting our financial exposure to a prospect we felt was unlikely to be successful was proven correct. "We have subsequently been pursuing the Kenedy Ranch interest Santos held for some time and finally reached an agreement to purchase these interests from IPR, who recently finalised the purchase of Santos's USA business interests. "We believe there is significant remaining potential in this acreage for a number of new gas discoveries."
AZZ Price at posting:
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