Icon Energy Limited Annual Report 2022

2 Icon Energy Annual Report 2022 Chairman's Letter Dear Shareholder Over the 2021-2022 financial year, Icon has continued to work on its plans for the commercialisation of its most prospective tenement being ATP 855. In the meantime, Icon has also increased its focus on ATP 855 by its decisions to relinquish areas considered less prospective. The process of planning has suffered delays not only due to the continuing effects of Covid arising from inability to conduct face-to-face meetings and inspections due to lockouts and travel restrictions but also due to weather. You will be aware of the significant rain events which have affected south-west Queensland over the last year and closed public roads from time to time but which have made it more difficult and frequently impossible to drive off-road to the operation sites. I am pleased to report that Icon has made significant progress in the development of its seismic program for ATP855 which is anticipated to enhance the identification of the most highly prospective drilling sites. The program is anticipated to commence in March or April 2023 subject to the La Nina weather event which was recently declared. That seismic program is an exciting development and further details can be found in the Operations Report section. Icon’s plans for ATP855 had been made more exciting by recent developments in relation to the gas markets. The Australian Energy Regulator (AER) on 29 September 2022 released its State of the Energy Market 2022 report. The AER reported that over late 2021 and particularly since April 2022, gas prices in East Coast gas markets have rose to and persisted at record highs. The AER noted that Southern gas production is continuing to deplete reserves. Icon hopes that the increase in gas prices will be more attractive to investors. Icon plans to produce methane gas and hydrogen from the discoveries made in ATP 855 while achieving zero carbon. Up to 28 Trillion Feet (TCF) of Gas has been classified by Degolyer and McNaughton as the most likely gas resource in the tenement with 1.57 TCF classified as 2C Contingent based on the gas flows from the wells on tests. Icon Energy at the end of the financial year held a cash and bank balance of $1,845,450. That was the result of Icon’s investors faith in its plans which was demonstrated by the successful capital raisings in the financial year. Firstly there was a placement of 60 million ordinary shares at $0.01 per share which raised $600,000 before expenses. Secondly, to ensure that Icon’s existing shareholders could participate in a capital raising, there was a Rights Issue offer whereby existing shareholders could subscribe for shares again at the same price of one cent per ordinary share. That rights issue raised $971,503 before costs. Each of the shareholders participating in that rights issue were also issued with an option to subscribe for further shares exercisable before 12 September 2022. A number of shareholders did exercise their options to subscribe for more shares. The most significant subscription was that by Mr Raymond James and his associates who subscribed for $630,783 worth of shares out of the $662,821 for which subscriptions were received. Mr Stephen Barry Chairman and Non-executive Director of Icon Energy Limited.