Icon Energy Annual Report 2019

The impairment has been conducted to comply with Australian Accounting Standards. The impairment does not affect the potential prospectivity of the tenements themselves and does not affect the existing resource certification. Icon Energy continues to seek funding and/or joint venturers to continue work on the tenements. ATP 594 Cooper-Eromanga Basin Queensland −− On 21 March 2019 the Department of Natural Resources, Mines and Energy approved the Special Amendment for ATP 594, which extends the Authority to Prospect, the Later Work Program and the relinquishment condition by 2 years from 16 April 2019 to 16 April 2021. After this date, the tenement will have a further exploration period of 6 years to April 2027, the approval of which will be subject to fulfilling the requirements of the current work program. −− Following the Harrier 3D seismic survey in the northern block, a structural prospect was identified at Hutton Sandstone level and a stratigraphic target identified in the mid-Birkhead Sandstone. There are additional leads, but these require further technical work. −− Despite the extension of the term of ATP 594 for a further two years during the year ended 30 June 2019, the Group decided not to budget for exploration of this tenement in 2020. As a result, this exploration asset has been fully impaired in order to comply with AASB 6 Exploration for and Evaluation of Mineral Resources . −− Icon continues to seek a potential joint venturer interested in farming into ATP 594 to continue the exploration of the permit. ATP 855 Cooper-Eromanga Basin Queensland −− The permit, which is covered by eight (8) Potential Commercial Areas (PCAs), is currently two thirds of the way through Year 3 (Year 9 for the tenement) of a 4-year Later Work Program (LWP) and remains compliant. The remaining work under the current LWP includes a suite of G&G studies and 300 km2 of new 3D seismic acquisition. −− To comply with AASB 6, exploration expenditure for ATP 855 was impaired to the value of $5.9m. The value was prepared by an independent valuer on the basis of farm-in promotion factor, taking into consideration that the Group is currently in the process of attempting to farm down ATP 855. −− Icon continues to seek a potential joint venturer interested in farming into ATP 855 to continue the exploration of the permit. −− Icon will immediately issue an announcement should any agreements be reached. −− Icon continues to monitor the 5 suspended discovery wells drilled within the permit, which currently remain in a stable condition. PEP 170, 172 and 173 Gippsland Basin Victoria −− PEP 170 (granted), and PEP 172 and 173 (grants pending), remain subject to a moratorium on onshore exploration and a ban on unconventional drilling activity. −− The Victorian Government advised Icon that the Resources Legislation Amendment (Fracking Ban) Act 2017 came into effect on 16 March 2017. The Act bans hydraulic fracturing under the Petroleum Act (Vic) 1998 and imposes a moratorium on petroleum exploration and petroleum production in the onshore areas of Victoria until 30 June 2020. −− Icon has continued to extend the PEP 170 permit for the time being, paying all necessary fees, to keep the permit in good standing. −− The Earth Resources Regulation intends to vary the permit conditions of PEP 170 to reflect the approved suspension and extension and will consider Icon’s proposed revised work program submitted in December 2017. −− In July the Victorian Government approved the drilling of an onshore well which is programmed to directionally drill offshore intersecting targets under the sea. This may indicate a potential change of thinking within Government foreshadowing the lifting of the moratorium on onshore exploration next year. PRLs 35, 37, 38, 41, 43, 44, 45, 48 and 49 South Australia −− On 15 March 2019 Beach Energy informed Icon that it had made an application to renew 50% of the PRL 33 to 49 area. This means that the eight PRL’s that do not contain wells were relinquished as of the anniversary date on 28 April 2019. −− Icon has a 33.33% interest in the post-Permian section of the remaining PRLs 35, 37, 38, 41, 43, 44, 45, 48 and 49 in South Australia, which cover a total area of 857 km 2 . Corporate −− Icon Energy held the Company’s 2018 Annual General Meeting on 21 November 2018 with all resolutions adopted. −− On 12 October 2018, Justice Bond of the Supreme Court of Queensland delivered judgement in the matter of Baldwin versus Icon. The Plaintiffs’ claims against Icon Energy were dismissed and the Plaintiffs were ordered to pay Icon’s costs, which have been paid. 25 Icon Energy Annual Report 2019