ATP 855 is located in the Cooper-Eromanga Basin on the eastern side of the Queensland and South Australian border. PEL218 lies adjacent to ATP 855 on the western side of the border and both permits share part of the Nappamerri Trough. The Nappamerri Trough is a potential world class gas asset and the most advanced shale and basin centred gas province in Australia. The Moomba to Ballera Gas Pipeline traverses the block and the area is surrounded by existing oil and gas production units. ATP 855 occupies a total area of 1,674km².
Joint Venture Interests
Icon Energy – 35.1%*
Beach Energy – 46.9%* (Operator)
Chevron Australia Exploration 1 Pty Ltd – 18%*
* Subject to regulatory approval
On 25 February 2013 Beach Energy Ltd farmed-out part of its interest in the PEL 218 and ATP 855 permits to Chevron Australia. Under the farm-out Beach will assign up to 60% of its interest in PEL 218 and ATP 855 to Chevron Australia over two stages. Icon Energy consented to and waived its pre-emptive rights in relation to each stage of the farm-out transaction while maintaining its 40% interest in ATP 855. At the same time Icon Energy was granted a Put Option by Beach, exercisable by Icon Energy up to 30 June 2013, where Icon could require Beach to acquire a 4.9% interest in ATP 855 from Icon on payment by Beach of US$18 million. On the 17 June 2013 Icon exercised the Put Option. Following the completion of the Put Option transaction on 25 June 2013, Icon hold a 35.1% interest, Beach a 46.9% interest and Chevron Australia an 18% interest in ATP 855.
Conventional and unconventional oil and gas.
The accelerated exploration program in ATP 855 includes the drilling of 7 wells, hydraulic stimulation and flow testing of a number of these wells over the next 20 months and this activity will more than meet the tenement work commitment.
In August 2013 Beach Energy, in its capacity as Operator of the ATP 855 joint venture, engaged a petroleum resource evaluation consultant to undertake a report on Contingent Resources in the area around the Halifax-1 well. The assessment reported 318 Bcf of 1C, 629 Bcf of 2C and 1.115 Tcf of 3C gross contingent resource.
All these activities further de-risk unconventional shale gas exploration in ATP 855 and across the Cooper Basin.
Update on the Unconventional Drilling Program in ATP 855
The ongoing ATP 855 drilling program being carried out by the ATP 855 joint venture comprising Icon Energy, Beach Energy (Operator) and Chevron Australia joint venture, continues to de-risk the unconventional basin-centred gas and shale gas potential within the Nappamerri Trough in of the Cooper Basin.
Halifax-1, the first well drilled and fracture stimulated in the 414,000 acre ATP 855 tenement, represents a proof of concept for proved the a continuation of the deep tight basin-centred gas play on the Queensland side of the Nappamerri Trough. The well, which has been on extended production test for approximately 6 months, producing 239 MMscf of gas in total before being shut in in late August. The well is currently on long term build up. A Notice of Petroleum Discovery was lodged with the Department of Natural Resources and Mines (DNRM).
Hervey-1, a vertical exploration well spudded on 26 May 2013, is located 30 kms east of Halifax-1. The well reached a total depth of 4,269 metres on 16 July 2013 after encountering gas shows throughout the Permian section. The thickness of the Patchawarra Formation at total depth was greater than 800 metres. Drilling results are being evaluated in preparation for a hydraulic stimulation program in early 2014, followed by an extended production test.
Keppel-1, a vertical exploration well spudded on 3 June 2013, is located 25 kms north east of Halifax-1. The well is located in the deepest section of the Nappamerri Trough and was scheduled to be drilled to a depth of approximately 4,890 metres. Keppel-1 was drilling through the Permian target formations, it encountered strong gas influx from the overpressured Epsilon Formation. . The Operator, Beach Energy, utilised best practice well control methodology to secure A Notice of Discovery was lodged with the DNRM and the well was suspended and is available for re-entry. The gas encountered in Keppel-1 confirms the continuation of the basin-centred gas play.
Geoffrey-1, located 36 kms north east of Hervey-1, is the fourth well drilled in the six well exploration program within ATP 855. The well is planned to reach a depth of approximately 4,266 metres and will evaluate the basin-centred gas potential of the eastern side of the permit. The well spudded on 14 October 2013.
In the future, additional wells are planned to be drilled, hydraulic stimulated and flow tested to provide proof of concept of the over-pressured, gas-saturated tight sand and shale formations within the Permian section of the Nappamerri Trough.
For the latest information on Icon Energy’s exploration activities see below, or go to Announcements at www.iconenergy.com/news/company-announcements
- Geoffrey-1 Unconventional Shale Gas Well Spuds - 16 October 2013
- Significant Contingent Resource Booking - 26 August 2013
- Update on the Unconventional Drilling Program in ATP 855 - 21 August 2013
- Icon Energy Quarterly Report Ending 30 June 2013 - 30 July 2013
- Hervey-1 well Reaches Total Depth - 16 July 2013
- Unconventional Shale Gas Exploration Update - 5 July 2013
- Icon Energy Farms Down JV Interest To Beach Energy - 26 June 2013
- Icon Energy Exercises US$18 Million Put Option with Beach Energy - 17 June 2013
Keppel-1 Unconventional Shale Gas Well Spuds - 3 June 2013
- Hervey-1 Unconventional Shale Gas Well Spuds - 27 May 2013
- Icon Energy Quarterly Report Ending 31 March 2013 - 30 April 2013
- Unconventional Shale Gas Exploration Update - 17 April 2013
- Halifax-1 Gas Flow Increases to 3.9 MMSCFD - 6 March 2013
- Icon Energy Welcomes Chevron Australia as a JV Partner in ATP 855 - 25 February 2013