Page 11 - Icon Energy 2014 Annual Report

ABN 61 058 454 569

ICON ENERGY LIMITED

2014 Annual Report

11

REVIEW OF OPERATIONS

In September 2014, a CoiledTubingUnit (

CTU

) cleaned out the

Geoffrey-1well prior to perforating a single zone in the Lower

Patchawarra and conducting an injectivity test.This activity is

designed to determinewhether the lowermost interval in this

well will be stimulated prior to being tested. Following testing of

the lowermost interval inGeoffrey-1 and, subject to JV approval,

shallower formationswill subsequently be stimulated and flow

tested in order to evaluate the flowcharacteristics of those

individual formations.This step by step processwill lead to a

better understanding of the overall gas deliverability from thewell.

In December 2013 the Redland-1 vertical well, located

22km North-west of Geoffrey-1, was drilled to a depth of

3,804 metres to evaluate the shale and basin centred gas

play in theToolachee and Daralingie Formation intervals

in the north of the permit. TheToolachee and Daralingie

formations penetrated exhibited significant gas shows. A

Notice of Petroleum Discovery was lodged with DNRM for

Redland-1.

The Etty-1 vertical well, located 9km to the east of Halifax-1,

was drilled in February 2014 to a depth of 3,807 metres

to evaluate the basin centred gas potential of the Permian

Formations from the top of theToolachee to the top of the

Patchawarra Formation. The well intersected gas throughout

the Permian section therefore supporting the hypothesis of

a basin centred gas play. A Notice of Petroleum Discovery

was lodged with DNRM for Etty-1.

With the drilling of Etty-1, the sixth well in ATP 855, the

JV has completed the mandatory work program that

included the 423km Gallus 2D seismic survey which was

completed in April 2012.

Condor fracture stimulation spread on location at

Hervey-1 in the Cooper Basin, Queensland

Diagram of Redland-1 showing the four zones in theToolachee and Daralingie Formation

proposed for fracture stimulation and then flow testing.

REDLAND-1

Steel casing

cemented

in place

Pre-Permian Sequence

Patchawarra Formation

Murteree Shale

Epsilon Formation

Roseneath Shale

Daralingie Formation

Toolachee Formation

Nappamerri Group

Jurassic Sediments

Early Cretaceous

Sediments

Diagram of Etty-1 showing the four zones in theToolachee and Daralingie Formation