Antares Energy Limited : Operational Update - Permian Basin

10/17/2011| 08:20pm US/Eastern

Recommend:

0

A.C.N. 009 230 835

Level 2, 5 Ord Street Telephone: + 61 8 9324 2177

West Perth WA 6005 Facsimile: + 61 8 9324 1224

Website:www.antaresenergy.com PO Box 690 Email: mail@antaresenergy.com West Perth WA 6872

HOUSTON, OCTOBER 17, 2011

Drilling operations at the Live Oak No. 1 continue to progress with the well at a current measured depth of approximately 10,200 feet. The preliminary total depth of the well is 10,300 feet at which point wireline logs will be acquired and 5.5” production casing will be set and cemented. Throughout the drilling of the well encouraging hydrocarbon shows were encountered in the Spraberry, Wolfcamp, Strawn, Atoka and Mississippian sections. Currently, the well is
scheduled to undergo multi-stage fracture stimulation in January 2012. During the interim period, Antares will work with its partners and service companies to devise an optimal fracture
stimulation treatment.

The fracture stimulation treatment of the Cozart A No. 1R was successfully pumped, concluding on Friday, October 14th. A pulling unit is currently drilling out the composite bridge plugs used to isolate each stimulation stage prior to being comingled into a single production stream. Temporary production facilities are in place to gauge the performance of the well while permanent production facilities including a tank battery and heater treater are being fabricated.

As last reported, remedial operations were undertaken to stem the flow of water from a shallow geologic formation in the Newbrough No. 1. Through the course of that operation a shallow secondary prospective reservoir was isolated and tested. Results from that test have provided enough encouragement to extend the testing period to gain further data on the production characteristics of the reservoir, as it is prospective throughout the majority of the 12,400-acre Northern Star project area. Notionally, several additional weeks of testing will be undertaken prior to performing a cement squeeze on the water bearing interval and opening up the deeper hydrocarbon bearing reservoirs that are correlatable to that interval fracture stimulated at the Cozart A No. 1R.

A fifth well in the Big Star project area, Woodward 7 No. 1, is scheduled to commence drilling operations in several weeks. The well is expected to encounter pays in the Mississippian, Pennsylvanian, Cline, Wolfcamp, Dean and Spraberry formations. There is the potential for encountering pay in the Cisco, which produced approximately one mile north. The well will also test tight Dean clastics just outside of the fairway of conventional Dean production immediately to the west.

For further information please contact: James Cruickshank Chairman & CEO
+ (61) (0) 488 222 122 or + (1) 214 762 2202
Or visit our website: www.antaresenergy.com

0