Icon Energy Limited Annual Report 2022

Icon Energy Annual Report 2022 5 In the past year it has not been possible to conduct field operations in the tenement. It is now planned for the first half of 2023. This delay was caused by La Nina weather, COVID delays and availability of seismic equipment. The first available slot to commence the seismic survey was in late November 2022 but this was unsuitable as it was only a short time before Xmas break and the forecast onset of La Nina wet weather through to flooding rains until the first quarter of 2023. A seismic contract has been signed with Terrex who operates seismic surveys in the Cooper Basin to commence a 300 square kilometer 3D survey called the Keppel Seismic survey. Following the survey, it is planned to drill two deep wells with the first being a twin of Keppel No. 1 and the second well to follow at a site to be located by the new survey. Dennis Cooke managed an industrially-sponsored research group at Adelaide University that studied tight gas in the Cooper Basin. He has proposed a new seismic method for Icon to identify fractures and velocity inversions in ATP 855 using seismic data. A 300 square kilometer 3D Seismic survey has been laid out by Michael Giles our consulting geophysicist. The survey is designed to locate fractured or broken rock similar to that encountered in Keppel No.1. This discovery of naturally fractured rock has clearly indicated that major fracturing can occur at this this depth where super abnormal pressures have been penetrated. For technical reasons, Keppel No. 1 could not be tested but flowed gas from a very high pressured, fractured zone. The hypothesis now proposed is that these naturally fractured zones in the Permian rocks are saturated with high pressure gas. We have been able to demonstrate that attribute and velocity processing can probably identify these fracture zones using new seismic data information to image these fracture haloes. The old seismic data was not processed or recorded in an optimal way to identify these zones. We are not 100% certain that the new method will work but it must now be tested with new seismic and drilling of new wells. Other areas of the Nappamerri Trough in the Cooper Basin have successfully produced gas from similar fracture zones. If the method is confirmed by the drill bit then the need to frack the formations might be avoided all together or at least minimised. This discovery could be a significant boost in saving time and money. The high temperatures and pressures in the Nappamerri Trough would then no longer be an impediment to the production of gas, but a very favourable occurrence in the Nappamerri Trough. Icon has been encouraged by the reprocessing of selected older seismic data that this new approach should work but remains to be tested. Icon has been frustrated by Covid and weather delays, but a clear window must be available to layout the 30,000 seismic recording nodes over 300 Square Kilometers and if significant weather or other delays occur, then the nodes must be picked up and then relaid when the weather improves. The picture below shows a field technician calibrating a nodal station in preparation for seismic recording. No cables are required for connection to the recording truck using this wireless recording. To minimise surface damage, the seismic vibrator trucks, shown below, are equipped with very large tyres which are designed to travel over the sand and very rough ground found in the Stoney Desert of southwest Queensland. They do not need roads to be bull dozed or graded for their operations. In ATP 855 the desert is mostly free of bushes and has very few trees which are easily avoided. This crew operated by Terrex was our first choice for use in this tenement. Once the vehicles have left the area, the surface very quickly returns to normal without lasting traces on the ground.