Tenements

ATP 855P

Location
ATP 855 is located in the Cooper-Eromanga Basin on the eastern side of the Queensland and South Australian border. PEL 218 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.

atp 855 218 base full detail with well locations v8-01

 Figure 1: PEL 218 / ATP 855 Well Locations

Joint Venture Interests
Current Interests

Icon Energy - 35.1%
Beach Energy - 46.9%* (Operator)
Chevron Australia Exploration 1 Pty Ltd - 18%

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.

Prospect Type
Conventional and unconventional oil and gas. 

Exploration Program
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.

Update on the Unconventional Drilling Program in ATP 855
On 26 August 2013 Icon announced that Beach Energy, the ATP 855 joint venture Operator had 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 Bcf of 3C gross contingent resource.  The results from the Halifax-1 well encouraged the joint venture to continue the exploration program and the Company announced that five additional wells would be drilled in ATP 855 prior to October 2014 to meet exploration permit obligations.

The first of the additional wells, Hervey-1, which is located 30km east of Halifax-1 was spudded in May 2013, encountered gas shows and is expected to be hydraulically stimulated in Q2 2014.

The second vertical well, Keppel-1, located 25 km north east of Halifax-1, was spudded in June 2013 and experienced significant gas influx from the over-pressured Epsilon Formation at a depth of 3,898 metres.

The third well, Geoffrey-1, located 36 kilometres to the north-east of Hervey-1, was spudded on 14 October 2013.  The Geoffrey-1 well was drilled to evaluate the shale and basin-centred gas play in the Toolachee, Daralingie, Roseneath, Epsilon, Murteree and Patchawarra Formation intervals in the east of ATP 855. 

On 9 December 2013 the Geoffrey-1 well reached total depth of 4,125 metres in the Patchawarra Formation. The results of the well have been very encouraging with good gas shows throughout the Permian section. Geoffrey-1 was cased and suspended pending subsequent hydraulic stimulation and flow testing as part of a multi-well stimulation campaign commencing in Q2 of 2014.

The fourth well, Redland-1, is located approximately 18 kilometres north east of Keppel-1 in a structurally deep location in the Nappamerri Trough. Redland-1 was spudded on 15 December 2013 and is designed to specifically address the Toolachee and Daralingie Formations.

On 23 January 2014, Redland-1 reached total depth of 3,804 metres and exhibited significant gas shows during drilling. Beach Energy Limited, has, on behalf of the Joint Venture, submitted a notice of a petroleum discovery at Redland-1 to the Department for Natural Resources and Mines (DNRM). An interpretation of the wireline log data indicates the target interval to be gas saturated, which is supported by mud gas readings of up to 800 units. Redland-1 is currently being cased pending subsequent hydraulic stimulation and flow testing as part of a multi-well stimulation campaign beginning in the third quarter of 2014.

Following drilling of Redland-1, the Ensign 965 rig moved to the fifth additional well in the drilling campaign, Etty-1. Etty-1 is located approximately nine kilometres east of Halifax-1 and on 23 March 2014 reached total depth of 3,807 metres in the top of the Patchawarra Formation.

All wells drilled within ATP 855 to date, Halifax-1, Hervey-1, Keppel-1, Geoffrey-1, Redland-1 and Etty-1 have confirmed the continuation of the basin-centred gas play in the Nappamerri Trough, with ATP 855 containing the deepest sections of the Trough. Notices of Petroleum Discovery have already been lodged with the DNRM for Halifax-1 and Keppel-1.

The JV is always looking at utilizing the most effective techniques for the Drilling and Completions of its wells including designs that may utilize techniques currently proven in North America. 

The 2014 multi-well stimulation campaign of the wells including Hervey-1, Geoffrey-1, Redland-1 and Etty-1, is expected to commence in Q2 2014. Key target reservoirs have been identified for specific zone fracture stimulation and flow tests. These tests are aimed at gathering information on the contribution from individual target zones, which will be a fraction of each well’s capability. A new contract for fracture stimulation and completion of the four wells in ATP 855 was awarded to Condor Energy Services Limited, a newly established Australian company with new equipment from North America.  Condor personnel have experience both in the Cooper Basin and internationally.

For the latest information on Icon Energy’s exploration activities see below, or go to Announcements at www.iconenergy.com/news/company-announcements