ATP 626P

Icon’s core business is now focused on the coal bed methane gas reserves in permit ATP 626P in the Surat Basin in Queensland.  A preliminary estimate of the gas in place is now estimated to be in the range of 2.00 to 7.00 trillion cubic feet (TCF).

Icon Energy Ltd’s has a report from an independent expert stating the indicated resource estimate is between 2 TCF and 5 TCF.  This prospective resource has a value of approximately  $AUD1.85 per gigajoule of between $3.7 and 9.2 billion dollars at full recovery.

Our in-house Geologist’s most likely estimate of this gas resource equals the 5 TCF to 7 TCF of natural gas.  He estimated this gas to be 2TCF gas at the 3P level based on the SPE rules that allow for comparison with comparable fields.  The remainder of his estimated reserves are in the Contingent category.

The 2009 – 2010 Drilling Program has been completed. The key goal of the 2009 -2010 twelve well program was to fulfil Icon’s obligations under Stage One of the farm in with the Queensland Government owned Stanwell Corporation Limited, and to evaluate gas potential in ATP 626P.

Following the First Stage Final Report, Stanwell Corporation has committed to the Second Stage Work Program, committing $30 million to the Program. The pilot production wells for the 2010 – 2011 Drilling Program are expected to commence following consultations with Icon’s joint venture party Stanwell Corporation.
 

ATP 849P

ATP 849 was granted to Icon Energy by the Minister on 24 August 2009. The 2010-2011 program consists of conducting 200 km seismic program and drilling two core holes.

The area is prospective for a coal seam gas reservoir in the Walloon Coal Measures (WCM). These coals are found at shallow depths (up to 400m) over most of this very large permit (3,853 sq km or approximately 1 million acres).

Icon’s interest in this permit is 80%
 

ATP 794

Icon Energy is not engaged in a program for this block at present.  Springfield East No 1 drilled in 1998 by Icon, confirmed a gas flow to surface (not commercial) at this point. A seismic acquisition and drilling program is proposed for future farmout development.
 

PEL 218

Icon farmed into this permit in October 2007 earning a 33.3% working interest in the Mesozoic sedimentary section. Seven structures/leads have been identified for drilling and there is a large structure in the western side of the block where there is potential to fund up to twenty million barrels of oil recoverable.

The block covers the South Australian side of the Nappameri Trough that is the source “kitchen” for oil that is producing in the fields north and south of the block. Three petroleum licenses lie within the block and are not part of our interest.

The Ballera to Moomba gas pipeline traverse the centre of the block.

The 2010- 2011 Work Program would consist of drilling up to four core wells to assess gas content, saturations, net coal and rudimentary permeability numbers from the core wells. Icon Energy is working with its joint venture partners in order to share the resources and infrastructure needed to carry out the work program in the Cooper Basin.
 

ATP 594

Icon is the operator of ATP 594. The program is presently under review pending discussions with the other 50% partner to transfer their 50% to Icon Energy. The permit is subject to an ORR, following Triple J Pty Ltd’s default that needs to be converted to a working interest before farmout negotiations can be entered.

Icon 50% holder.
 

ATP 855P

Icon Energy was granted the Environmental Authority for ATP 855P on the 8th July 2010. The Section 31 Deed was signed by the Minster, the Honourable Stephen Robertson on the 4th August 2010. Icon Energy intends to commence seismic acquisition and an exploration drilling program in the later half of 2010. Icon Energy has already commenced seismic reprocessing in relation to ATP 855P.

Icon Energy may be bale to combine the coring programmes for PEL 218 and ATP 855P to avoid the high costs of rig mobilisation and demobilisation.

Commencement of the drilling program will be subject to our joint venture partners’ approval and the Minister’s formal granting of ATP 855P.
 

ATP 549P (West)

Icon is the operator of this block. Icon Energy is working towards a replacement tenure for this block.

Icon’s interest is 33.33%

ATP 560 U11

This block is currently under review

Icon’s interest is 50.5%
 

EPG 49 and EPG 51

The Minister has granted geothermal exploration permits for EPG 48 and EPG 51 to Icon Energy, effective from 1 August 2010. The Cultural Heritage Agreement was reached with the Wongkumara Traditional Owners in May 2010.

The area consists of NappaMerri 1 (EPG 49) and NappaMerri 2 and the tenements are located beneath ATP 855P which is located on the eastern side of the Queensland and South Australian border.

The drilling program for EPG 49 and EPG 51 will be strategically aligned with future programs in ATP 855P to allow for cost savings and efficiencies. It includes geological and geophysical studies, gravity surveys, seismic acquisition and the drilling of wells during the first five year periods of the permits.

Icon Energy is the operator for the geothermal exploration permits and has 100% working interests in both permits.