Icon Energy Limited Annual Report 2016

ATP 855 Cooper-Eromanga Basin Queensland − The Stage 1 program in ATP 855 achieved all the exploration and technical objectives that were set by the Joint Venture partners. This included flowing natural gas from five wells, achieving the highest flow rate of 4.5 MMscf/d from a shale gas well (Halifax-1) in the Cooper Basin, having six Petroleum Discoveries and identifying a significant natural gas resource within the Permian Formations of the Nappamerri Trough. − The Joint Venture is currently reviewing the results of the Stage 1 program in order to prepare for the next phase of activity in the permit and ultimately progress the project towards commerciality. ATP 626 Surat Basin Queensland − ATP 626 is currently in the last term with the Later Work Program covering the period from 1 January 2014 to 31 August 2017. − As part of the year end process, the Company decided to take a conservative approach and impair the exploration expenditure of the three suspended wells in the tenement, Eolus-1, Mindagabie-1 and Stitch-1, at the end of 2016 financial year. − These three wells will be plugged and rehabilitated in the first quarter of 2017 financial year. ATP 549 (West) Cooper Basin Queensland − There has been no activity in ATP 549 (West) in the Cooper Basin throughout the year. Icon has a 33.33% interest in the permit, which is now operated by Beach Energy following its merger with Drillsearch Energy Limited which was completed at the beginning of March 2016. ATP 794 Cooper Basin Queensland − There has been no activity in the Springfield and Regleigh Blocks within ATP 794 located on the eastern flank of the Cooper Basin. The permit is operated by Senex Energy Limited and Icon has a 60% interest in both blocks. PEP 170, 172 and 173 Gippsland Basin Victoria − PEP 170, 172 and 173 remain subject to the General Moratorium covering all drilling in onshore Victoria. Icon has suspended all field work in PEP 170 and the granting of PEP 172 and PEP 173 has been deferred until the Moratorium issue is resolved. PRLs 33 to 49 South Australia − In PRLs 33 to 49 in South Australia, which was formerly PEL 218, there has been no activity throughout the year. Icon has a 33.33% interest in the Post-Permian section in these licenses, which are operated by Beach Energy. Corporate − Icon Energy held the Company’s 2015 Annual General Meeting on 24 November 2015 with all resolutions adopted. − On 26 February 2015, the Company announced it intended to undertake an on-market share buy-back over the next 12 months of up to 10% of Icon Energy ordinary shares on issue, totalling up to 61.9 million shares. The buy-back provides Icon with an opportunity to strengthen the Company’s capital position at a cyclical low point in the resources market and also demonstrates the Board’s strong belief in the underlying value of the Company’s assets. The timing and actual number of shares purchased under the buy-back will depend on the prevailing share price, market conditions and other considerations. The Company reserves the right to suspend or terminate the buy-back at any time and to buy-back less than the full amount of 61.9 million shares. All shares purchased will be cancelled. − In February 2016, the buyback period was extended to 12 March 2017. As at 30 June 2016, 21,160,565 shares were purchased and cancelled. Research and Development Activity Icon Energy lodged a Research and Development (R&D) claim for the full year ended 30 June 2015. In November 2015, Icon Energy received a Research and Development (R&D) tax rebate of $8.2 million. FINANCIAL REPORT 27 ICON ENERGY ANNUAL REPORT 2016