Icon Energy Limited Annual Report 2017

7 ICON ENERGY ANNUAL REPORT 2017 REVIEW OF OPERATIONS ATP 855 COOPER BASIN, QUEENSLAND On 31 March 2017, Icon Energy assumed 100% interest and operatorship of ATP 855. The permit is located in the Cooper Basin, Queensland, and covers an area of 1,679 square kilometers (414,000 acres). On 27 April 2017, the DNRM approved the Transfer of Interest in ATP 855 from Beach Energy Limited to Icon Energy Limited. Icon now owns 100% and is Operator of the tenement. On 20 April 2017, Icon submitted to DNRM an application for the grant of eight Potential Commercial Areas ( PCAs ) covering the entire area of ATP 855. On 8 June 2017, Icon lodged an amended Later Work Program for ATP 855 and amended Evaluation Programs for each of the eight PCAs with DNRM. On 21 June 2017, DNRM approved the ATP 855 amended Later Work Program in preparation for the next phase of activity in the permit. On 7 July 2017, the Department of Environment and Heritage Protection ( DEHP ) accepted Icon’s Bank Guarantee to comply with the financial assurance obligations of the ATP 855 Environmental Authority. On 28 August 2017, Icon announced that, pursuant to Section 90(1) of the Petroleum and Gas (Production and Safety) Act 2004, DNRM had declared Potential Commercial Areas over the entire ATP 855 permit in a letter which Icon received on the afternoon of 25 August 2017. The PCAs, numbered PCA 172 to 179, are for a period of 15 years and are designed to enable Icon, having discovered a permit-wide gas resource within ATP 855, the opportunity to retain an interest in and ultimately develop the discovery. Each PCA can be no larger than 3 graticular blocks, which is 75 sub-blocks or 229 square kilometres in area. Therefore, eight PCA’s are required to cover the entire ATP 855 permit, which covers a total area of 1,679 square kilometres. Each PCA application included a Commercial Viability Report that reflected Icon’s belief that the area is likely to be commercial within 15 years, and an Evaluation Program, that outlines the strategy Icon will adopt to appraise and develop the resource. Map of ATP 855 in the Cooper Basin showing the eight declared PCA areas, PCA 172 - 179