Icon Energy Limited Annual Report 2016

REVIEW OF OPERATIONS 6 ICON ENERGY ANNUAL REPORT 2016 REVIEW OF OPERATIONS ATP 594 COOPER-EROMANGA BASIN, QUEENSLAND ATP 594 is located approximately 140 kilometres west of Quilpie in the Cooper-Eromanga Basin. The tenement covers three separate areas consisting of a total area of 1,230 km 2 . ATP 594 was renewed by the Department of Natural Resources and Mines (DNRM) on 17 April 2015. The current approved term of ATP 594 is for 4 years, with an opportunity to apply for a renewal at the end of the 4-year time period. There is a further opportunity to renew after 8 years, which would take the maximum term allowable for the ATP to 12 years. ATP 594 is well positioned on the eastern flank of the Cooper Basin and is considered to be prospective for hydrocarbons following a recent technical evaluation. However, the permit is underexplored and has experienced a 17 year hiatus in exploration activity. The areas immediately adjacent to ATP 594 are resource rich in oil and gas. Several wells have been drilled in the proximity of ATP 594, mainly targeting conventional oil and gas, many with hydrocarbon shows. There are several oil fields to the southeast of the tenement, including the Kenmore and Bodalla South oilfields. The recent success on the western flank of the Cooper Basin can be attributed to a combination of an improved understanding of the geology and enhanced definition of the sub-surface structure which was achieved with the application of 3D seismic acquisition. This led to better well placement and therefore improved the chance of success. Icon is hoping to emulate that success in ATP 594. Preparations are now being made for Icon to acquire the Harrier 3D Seismic Survey in the permit to enable accurate structural definition of the sub-surface. Survey acquisition parameters have now been finalised and planning is well advanced in all areas of the operation. An expected start date for the Harrier 3D Seismic Survey is December 2016. Icon is the Operator of ATP 594 and has a 100% working interest in the tenement. Map showing the location of ATP 594, Cooper-Eromanga Basin, Queensland