Icon Energy Annual Report 2019

Review of Operations continued 6 Icon Energy Annual Report 2019 ATP 855 COOPER BASIN, QUEENSLAND ATP 855 is geographically located in far western Queensland, approximately 1,200 kilometres directly west of Brisbane, and covers an area of 1,679 square kilometres, or 414,000 acres (refer to the map above). ATP 855 is positioned within the deepest part of the Nappamerri Trough, which is the largest of the six troughs within the Cooper Basin. Contained within the thick sequence of Permian sediments is a very large, unconventional, basin- centred gas resource that extends across the entire tenement. Icon has a 100% interest in and is the Operator of the ATP 855 tenement and the basin-centred gas resource that it contains. The permit is currently three quarters of the way through a four year Later Work Program and is compliant in all areas of operation and reporting. The Department of Natural Resources, Mines and Energy (DNRME) declared Potential Commercial Areas (PCAs) over the entire ATP 855 tenement on 28 August 2017 under the Petroleum and Gas (Production and Safety) Act 2004 . These PCAs, numbered PCA 172 to 179 (refer to the map above), are for a period of 15 years and are designed to enable Icon sufficient time to fully appraise and ultimately develop the large volume of gas that has been discovered within the Permian sediments. Each of the eight PCAs, which are a maximum of 229 square kilometres in area, has an associated Commercial Viability Report that reflects Icon’s belief that the area is likely to be commercial within 15 years, and an Evaluation Program, that outlines the strategy that Icon proposes to appraise and develop the resource. The first stage of the exploration program in ATP 855 was successfully completed and included 2D seismic acquisition, technical studies and the drilling, stimulation and extended testing of five new wells. This was the first time that the deep section of the Nappamerri Trough in Queensland had been explored and it resulted in the discovery of a very large gas resource. This first stage of the exploration program achieved all technical objectives. These included: −− Discovering a significant natural gas resource and delineating its extent; −− Testing fracture stimulation techniques; five wells were successfully fracture stimulated. −− Identifying and prioritizing play types for future appraisal activities. −− Flowing gas and testing deliverability; all stimulated wells flowed gas to surface, with Halifax 1 achieving the highest recorded flow rate of 4.5 MMscf/d. −− Achieving a Contingent Resource booking. Map of ATP 855 in the Cooper Basin showing the eight declared PCA areas, PCA 172 – 179. 25km 5km 0km Nappa Merry Innamincka Tallalia Challum Hervey -1 Etty -1 Keppel-1 Halifax-1 Redland-1 Geo rey-1 Gas Discovery Raw Gas pipeline Sales Gas pipeline Seismic Adventure Highway Gas Field Oil Field QLD. S.A. Cooper-Eromanga Basin ATP 855 Road PCA 172 PCA 175 PCA 173 PCA 174 PCA 177 PCA 178 PCA 179 PCA 176