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 draft report from an independent expert stating the indicated resource estimate is between 2 TCF and 5 TCF.  This prospective reserve has a value at $AUD3.00 per gigajoule of between $6 and $15 billion dollars (or $2.00 to $15.00 per share).

Our in-house Geologist’s most likely estimate of this gas resource equals the 5 TCF to 7 TCG 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.

ATP 626P the CBM Pilot Project planning is now well advanced.  The first pilot production wells expected to commence in the 4th Qtr 2008.

ATP 849P

This permit was won in the 2006 tender process and will be granted to Icon and its joint venture partners as soon as the Environmental Authority is issued. 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 klm or approximately 1 million acres).

The area will be awarded for twelve years with $5.2 million obligatory Government expenditure in the first four years. One third of the area must be relinquished at the end of each four years unless a production license is granted to produce gas.

Icon’s interest in this permit is 80%.

ATP 794

Icon plans to farmout this block and is continuing negotiations. 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 under the new farmout negotiations.

EP 218

Icon farmed into this permit in October 2007 to earn a 33.3% working interest in the Mesozoic sedimentary section. Icon’s obligation under this program is to fund 50% of 100 kms of seismic data and drill one well to test the hydrocarbon potential of the Jurassic and Triassic sediments. 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.

Icon originally bid on this block when it was gazetted and the tender was awarded to Adelaide Energy, the present holder.

Icon’s interest is 33.3% (shallow)

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 855

This block is subject to Native Title claim. A four month advertising campaign is currently in progress. If no claimants come forward and register their claim within the advertising period then the permit will be awarded without Native Title Agreement. Otherwise, negotiations will commence with the claimants as an RTN process.

Icon 80% holder

ATP 549P (West)

Icon is the operator of this block. Discussions are being presently held with the other partners in relation to work program and replacement tenure.

Icon’s interest is 33.33%

ATP 560 U11

Discussions are being held with partners in this block to make a decision on the way to proceed forward.

Icon’s interest is 50.5%