Antares was previously participating in the Group A prospect of the Kenedy Ranch properties with a 5% stake.

But Antares managing director Howard McLaughlin said the company had been pursuing Santos’ 55% stake, as it believed the acreage had “significant potential” for new gas discoveries.

“Our initial strategy of limiting our financial exposure to a prospect we felt was unlikely to be successful was proven correct,” he said.

“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.”

The increased interest will see Antares test the potential gas sands encountered in the KMF-228-1 well drilled last year, as well as drill an additional exploration well early next year.

Antares also holds a 50% working interest in the Group B prospect.

Both prospects range in size from 20-150 BCF and have target depths varying from 13,000-16,000 feet (3960-4900m) for the main objectives.

Several of these features also have secondary shallow objectives on-trend with previous discoveries and fields.