Icon Energy Annual Report 2019

Image: Geoffrey #1 well location. ATP855 Cooper Basin. The amounts of the impairment of the tenements and of the associated inventory (totalling $28.2 million) are substantial contributors to this year’s $31.3 million financial loss. In respect of that impairment please note: −− The impairment does not affect the potential prospectivity of the tenements themselves. −− The impairment does not affect the existing resource certification for ATP 855. −− Icon continues to seek funding and a joint venturer, to continue work on the tenements. −− The impairment can be reversed in the financial statements at an appropriate time in the future if the fair value of the tenements increases. In June 2020 the Victorian governments moratorium of onshore drilling expires unless the government takes further action to extend the Moratorium. This is considered unlikely as the state grows short of local gas production. Throughout the past year Icon has conserved its cash. The Non- Executive Directors moved to reduce their director’s fees by 20% effective 1 January 2018. No staff bonuses were paid and the Performance Rights Plan (bonus scheme) lapsed in November 2017 and was not renewed. In August and September 2019, the company underwent a significant staff restructure. In that restructure: −− Several employees were made redundant having regard to the company’s level of operations. −− Directors Dr Kevin Jih and Mr Derek Murphy elected to retire after many years of service to the company. −− Mr James offered to vary his contract as managing director such that his base salary and superannuation were reduced by 60% with effect from 1 September 2019. Our people who have left due to redundancy or retirement will be missed and we thank them for their years of service to Icon. I would like to thank Icon’s team for their dedicated efforts over the past year. I am hopeful of success in raising funds and that Icon’s planned new activity will be reflected in a better price for Icon’s quoted securities soon. S M Barry Chairman 3 Icon Energy Annual Report 2019