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 custom for martin v2-03

Figure 1: ATP 855 Location map showing main gas pipelines and 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. 

Update on the Unconventional Drilling Program in ATP 855
The Halifax-1 vertical exploration well, which has been on extended comingled flow test from all stimulated formations, was finally shut in at midday on 25 August 2013, after a flow period of 188 days. During the extended flow test the well produced a cumulative total of 243 MMscf of gas and a Notice of Petroleum Discovery was lodged with the Department of Natural Resources and Mines (DNRM).

The Hervey-1 vertical exploration well reached a total of 4269 metres on 11 July 2013 and encountered encouraging gas shows through the Permian section.

The    Keppel-1    vertical    exploration well was spudded on 3 June 2013. Keppel-1 is located 25 kilometres north east of Halifax-1. Keppel-1 was drilled to a depth of 3,898 metres before drilling was suspended due to elevated gas in the drilling mud and well control methodology was used to secure and suspend the well.

On 26 August 2013 Icon announced that Beach Energy, in its capacity as Operator of the ATP 855 joint venture, had engaged DeGolyer & MacNaughton, a leading United States based independent consulting firm focused on the petroleum industry, 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 in accordance with the Petroleum Resources Management System.

The Geoffrey-1 well spudded on 14 October 2013. The Geoffrey-1 vertical well is located 36 kilometres north-east of Hervey-1. On 9 December 2013 the Geoffrey-1 well reached a total depth of 4,125 metres in the Patchawarra formation and the results of Geoffrey-1 have been very encouraging with good gas shows throughout the Permian section.
The Redland-1 vertical well was spudded on 15 December 2013 and is located 22 kilometres north-west of Geoffrey-1. On 23 January 2014 Redland-1 reached its target depth of 3,804 metres. Redland-1 recorded significant gas shows in the Toolachee and Daralingie Formations.

The next well, Etty-1 which is located 8.6 kilometres east of Halifax-1, was spudded on 9 February 2014. The Etty-1 vertical exploration well reached a total depth of 3,807 metres on 23 March 2014 and encountered gas shows throughout the Permian section.

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.

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.

On 19 June 2014, Icon announced that DeGolyer & MacNaughton, a leading United States based independent consulting firm focused on the petroleum industry, had provided a report on the Unconventional Prospective Resources in ATP 855. The findings of this independent report show a best estimate (P50) of 28Tcf of Gross Unconventional Prospective Raw Natural Gas Resources (as of 15 June, 2014) in ATP 855 of which Icon’s interest is 10Tcf (35.1%). The Unconventional Prospective Resources Estimates prepared by DeGolyer & MacNaughton were evaluated in accordance with the Petroleum Resources Management System.

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 early September 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.

Condor’s hydraulic stimulation equipment arrived and following clearance in Melbourne and testing in Adelaide, the equipment will be transported to the Cooper Basin in preparation for the commencement of the hydraulic stimulation program. This program, involving hydraulic stimulation and extended flow testing of specific formations in Geoffrey-1, Redland-1, Hervey-1 and Etty-1, is designed to better understand the gas production potential from the Permian Formations within the Nappamerri Trough. The program is scheduled to take a number of months as the wells are flow tested and preliminary decline rates determined in order to better understand the potential gas recovery from these formations.

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