The 3D survey is expected to start in March, take two months to shoot and a further two months to process. Texas-based San Isidro Development Company will fund the remaining 50%.

Antares said the area lies along a well-defined and productive deep Wilcox and Queen City proven hydrocarbon fairway with overlying shallow gas potential in the Hockley, Pettus and Het formations.

Under the agreement, the joint venture can exclusively select any amount of acreage within the 43,000-46,000 acres to lease for drilling until January 2008, with a fixed price and royalty rate.

Managing director Howard McLaughlin said Antares would undertake all the initial technical work, including the seismic acquisition, processing and interpretation, while San Isidro will lease the land and operate the drilling and completions.

“This is a unique and exciting opportunity to explore a large tract of very prospective, lightly explored land with newly acquired 3D seismic,” McLaughlin said.

McLaughlin said several “very attractive and potentially large” structural leads had been identified on the available 2D data, which would be further evaluated once the 3D seismic had been acquired and processed.

“We are very confident this project will lead to the drilling of a number of high-value wells,” he said.

“This project fits well into Antares strategy of pursuing onshore south Texas gas prospects with greater than 10 BCF net reserve impact and sufficient acreage to expand and grow in the success case.”

Once the seismic is interpreted and prospects developed, both parties can farmout specific prospects for drilling.