ICON ENERGY LIMITED - ASX: ICN

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Description

ATP 626P

Icon’s core business is now focused on the coal bed methane gas reserves in permit ATP 626P in the Surat Basin in Queensland. A preliminary estimate of the gas in place is now estimated to be in the range of 2.00 to 7.00 trillion cubic feet (TCF). Icon Energy Ltd’s has a report from an independent expert stating the indicated resource estimate is between 2 TCF and 5 TCF. This prospective resource has a value of approximately $AUD1.85 per gigajoule of between $3.7 and 9.2 billion dollars at full recovery. Our in-house Geologist’s most likely estimate of this gas resource equals the 5 TCF to 7 TCF of natural gas. He estimated this gas to be 2TCF gas at the 3P level based on the SPE rules that allow for comparison with comparable fields. The remainder of his estimated reserves are in the Contingent category. ATP 626P the CBM Pilot Project planning is now well advanced. The first pilot production wells expected to commence in March 2009.

ATP 849P (80% interset)

This permit was won in the 2006 tender process and will be granted to Icon and its joint venture partners as soon as the Environmental Authority is issued. The area is prospective for a coal seam gas reservoir in the Walloon Coal Measures (WCM). These coals are found at shallow depths (up to 400m) over most of this very large permit (3,853 sq km or approximately 1 million acres). The area will be awarded for twelve years with $5.2 million obligatory Government expenditure in the first four years. One third of the area must be relinquished at the end of each four years unless a production license is granted to produce gas.

ATP 794

Icon plans to farmout this block and is continuing negotiations. Springfield East No 1 drilled in 1998 by Icon, confirmed a gas flow to surface (not commercial) at this point. A seismic acquisition and drilling program is proposed under the new farmout negotiations.

PEL 218

Icon farmed into this permit in October 2007 to earn a 33.3% working interest in the Mesozoic sedimentary section. Icon’s obligation under this program is to fund 50% of 100 kms of seismic data and drill one well to test the hydrocarbon potential of the Jurassic and Triassic sediments. Seismic surveys of 300Km have now been completed and presently being analysed. It is anticipated that a well will be spudded in 2009 as a result of this information. Seven structures/leads have been identified for drilling and there is a large structure in the western side of the block where there is potential to fund up to twenty million barrels of oil recoverable. The block covers the South Australian side of the Nappameri Trough that is the source “kitchen” for oil that is producing in the fields north and south of the block. Three petroleum licenses lie within the block and are not part of our interest. The Ballera to Moomba gas pipeline traverse the centre of the block. The tender was awarded to Adelaide Energy, the present holder with Icon holding a 33.3% interest in the Mesozic sedimentary section of the block.

ATP 594 (50% interest)

Icon is the operator of ATP 594. The program is presently under review pending discussions with the other 50% partner to transfer their 50% to Icon Energy. The permit is subject to an ORR, following Triple J Pty Ltd’s default that needs to be converted to a working interest before farmout negotiations can be entered.

ATP 855 (80% intrest)

This block is subject to Native Title claim w ith the Wangakumurra Traditional owners. Negotiations will begin early in 2009 with Wangkumurra traditional owners as an RTN process.

ATP 549P West (33.33% interest)

Icon is the operator of this block. Discussions are being presently held with the other partners in relation to work program and replacement tenure.

ATP 560 U11 (50.5% interest)

This block is currently under review.

Mine For

oil, gas, coal seam gas, geothermal

Location of operation(s)

USA, Queensland, South Australia

Australian Basins

Cooper, Eromanga, Surat

Address

4 Miami Key
BROADBEACH WATERS, QLD, AUSTRALIA

Phone

(61 7) 5554 7111

Email

Website

http://www.iconenergy.com/

Last Updated

20/11/2008