The well is designed to test the lower Frio formation next to the productive S. Angleton (Collins Lake) Field, which has so far produced 17 billion cubic feet of gas.

The agreement, with Kansas-based Slawson Exploration Company, covers a 1700 acre group of leases over three separate fault compartments defined by good quality 3D seismic data, according to Antares.

Project potential varies between 4 and 12 bcf of gas, depending on individual well outcomes. A shallow oil play also existing within the project area is estimated to contain 400,000 barrels of recoverable potential.

Managing director Howard McLaughlin said these prospects were considered to be low risk, but high reward.

“Oyster Creek is a very attractive, low risk, near-term opportunity that augments our growing portfolio of South Texas projects,” he said.

“In the success case this project will deliver very good revenues and contribute to the funding of our other deep gas opportunities planned for the remainder of this year and next year.”

The first Oyster Creek well is due to spud in July. If successful, additional wells are likely to be drilled, according to Antares.