Tenements

PEP 170

In September 2010, following a competitive bidding process, the Victorian DPI granted Icon Energy a new petroleum exploration permit. PEP170 is located to the south of Lakes Oil's 2009  Wombat discovery, in the onshore section of the oil and gas rich Gippsland Basin.

From geological and geophysical desktop studies, as well as existing seismic and well data obtained through the Victorian DPI, Icon Energy has determined the existence of several anticline structures in the tenement. Intervals of primary interest that Icon Energy has within this tenement consist of the Latrobe Group (non-coal) sandstones, and the Strzelecki Group.

In compliance with the Petroleum Act 1998 (Vic), Icon Energy submitted its Operation Plan for PEP170 to the Victorian DPI in April 2011.

Icon Energy engaged Coffey International to assist in the preparation of the Operation Plan, which addressed environmental, anthropological and safety issues along with details of the wells proposed and compensation agreements required. A drilling rig has been identified but is waiting Operation Plan approval before going to contract.

Icon Energy has been in contact with the landholders and stakeholders in the local area. Various stakeholders have included the local council and the local fire authority.

Icon Energy has been in contact with the landholders and stakeholders in the local area. Representatives of Icon Energy met with the Gunaikurnai traditional owners and have agreed to enter into an Indigenous Land Use Agreement (ILUA). Negotiations will commence shortly to settle the terms for an ILUA, in order to manage any petroleum activities carried out in the area.

Icon Energy has recently been in consultation with the Victorian DPI in order to fine-tune certain aspects of the Operations Plan so that operations in PEP170 can commence as soon as possible in 2012.

Icon Energy intends to drill its first exploration well, Tiger-1 in PEP 170 in 2012. The Tiger-1 well will consist of a test of a structural closure from pre-existing seismic and well log data. Icon Energy plans on drilling this first exploratory well to a total depth of approximately 2,200 meters.