Icon Energy Limited Annual Report 2016

7 ICON ENERGY ANNUAL REPORT 2016 REVIEW OF OPERATIONS ATP 855 COOPER-EROMANGA BASIN, QUEENSLAND Icon Energy holds 35.1% equity in ATP 855 covering 414,000 acres and is located on the Queensland and South Australia border. The current interests in ATP 855 are Beach Energy Limited (Operator) 64.9% and Icon Energy 35.1%. Map showing the location of ATP 855 and the current well locations in the Cooper-Eromanga Basin, Queensland Icon Energy, in conjunction with Beach Energy Limited, achieved all the exploration and technical objectives that were set by the Joint Venture partners during the Stage 1 exploration program. This included flowing natural gas from five wells on test, 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 in ATP 855 and identifying a significant natural gas resource within the Permian Formations of the Nappamerri Trough. During the year Icon received an Exploration Subsurface Review from the Operator which is an exhaustive summary of the technical results of the Stage 1 exploration program across the Nappamerri Trough. The Joint Venture reviewed these results from the Stage 1 program in order to prepare the strategy for the next phase of activity in the permit. A Later Work Program for ATP 855 was lodged with the Department of Natural Resources and Mines on 30 August 2016 for the four-year period commencing 1 November 2016 in accordance with the requirements of the Act and Regulations, and DNRM’s plans and program guidelines. The proposed work program will aim to address the observations and outcomes from the initial exploration program, which is hoped will build the foundation for future activity. Meanwhile the permit and wells are being managed as part of an ongoing maintenance program to ensure that ATP 855 is kept in good standing. The Joint Venture is currently in the process of preparing Potential Commercial Area (PCA) documentation for submission to DNRM as part of its ongoing strategy for the permit. The large gas resource identified within ATP 855 will require considerable additional technical effort and time to progress towards commerciality. Security of tenure is critical during this phase of the project, hence the need for retention through PCA’s.