Icon Energy Annual Report 2019

7 Icon Energy Annual Report 2019 The gas resource estimates within ATP 855, as determined by DeGolyer and MacNaughton, are 28.5 Trillion Cubic Feet (Tcf) of P50 Gross Unconventional Prospective Raw Natural Gas Resource 1 over the whole permit, and 1.57 Tcf of 2C Contingent Resource 2 determined within defined areas surrounding the five wells already tested. These resource estimates were evaluated in accordance with the Petroleum Resources Management System (March 2007). The next stage of activity in ATP 855 will be designed to appraise the gas resource with the express purpose of demonstrating commerciality. Demonstrating commerciality in the permit would require a considerable technical and operational effort, but would lead to proven gas reserves, progressive conversion of blocks to production licences and a substantial development program, which could support the domestic gas market in Eastern Australia and, ultimately, lead to export contracts. A critical part of that process is attracting finance and/or a joint venture partner to progress this next stage of activity. Icon’s operational plan for ATP 855 requires Joint Venture participation for funding and to reduce the risk of carrying such a high percentage interest. This is normal practice in the petroleum exploration industry. Icon continues its endeavours to seek a joint venturer to join in the appraisal and development of the gas resource within ATP 855. This is proving to be an extensive and time consuming exercise. Operationally, Icon continues to monitor the six discovery wells within the permit. Five wells remain suspended. One well has been plugged and abandoned due to its unstable nature while drilling. This well, Keppel No 1, was plugged and abandoned when the well flowed gas to surface at a bottom hole pressure which reached the limit of the specifications of the drilling equipment at the time. Future drilling equipment will be upgraded to cope with the pressures encountered. Icon is the Operator of ATP 855 and currently has a 100% working interest in the tenement. ATP 594 COOPER-EROMANGA BASIN, QUEENSLAND ATP 594 is geographically located in western Queensland approximately 1,000 kilometres west of Brisbane and 140 kilometres west of the regional town of Quilpie. The tenement consists of three separate blocks covering a total area of 1,230 square kilometres (refer to the map above). On 21 March 2019 the Department of Natural Resources, Mines and Energy (DNRME) approved Icon’s application for a Special Amendment for ATP 594 notifying the following extensions pursuant to section 63C of the Petroleum and Gas (Production and Safety) Act 2004 (the Act),: −− Extending the term by 2 years to 16 April 2021. −− Extending the program period for the current approved work program by 2 years to 16 April 2021. −− Extending the relinquishment condition by 2 years to 16 April 2021. Cooloo-1 Cooper-Eromanga Basin Bunya Bodalla South Kenmore 25km Eromanga Taylor Franks-1 Colesmore-1 Thylungra Oil Field Oil Pipeline Gas Show Gas Field Gas Well Oil Show Oil & Gas Show Gas Pipeline Seismic Lines Roads QLD ATP 594 3D Seismic Harrier Survey Map showing the location of ATP 594 in the Cooper-Eromanga Basin, Queensland, and the position of the Harrier 3D Seismic Survey in the northern block.