Page 32 - Icon Energy 2014 Annual Report

DIRECTOR’S REPORT
32 ICON ENERGY LIMITED 2014 Annual Report ABN 61 058 454 569
Icon confirms that it is not aware of any new information or data that materially affects the information included in the announcements
released on 23 August 2013 and 19 June 2014 and that all the material assumptions and technical parameters underpinning the estimates in
the announcements continue to apply and have not materially changed.
The estimates of contingent and prospective petroleum resources must be read in conjunction with the explanatory and cautionary
statements on page 5 of this Annual Report including that the estimated quantities of petroleum that may potentially be recovered by
the application of a future development project(s) relate to undiscovered accumulations.These estimates have both an associated risk of
discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant
quantity of potentially moveable hydrocarbons.
1
• 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 vertical well, which is located 36 kilometres north-east of Hervey-1, spudded on 14 October 2013. On 9
December 2013 the Geoffrey-1 well reached a total depth of 4,125 metres in the Patchawarra formation and the results
have been very encouraging with good gas shows throughout the Permian section.
• The Redland-1 vertical well, which is located 22 kilometres north-west of Geoffrey-1, was spudded on 15 December 2013.
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 vertical exploration well, Etty-1, which is located 8.6 kilometres east of Halifax-1, was spudded on 9 February 2014.
Etty-1 reached a total depth of 3,807 metres on 23 March 2014 and encountered gas shows throughout the Permian
section.
• Notices of Petroleum Discovery have been lodged with the DNRM for the Halifax-1, Keppel-1, Redland-1 and Etty-1 wells.
• A new contract for fracture stimulation and completion of 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.
• On 19 June 2014 Icon announced that DeGolyer & MacNaughton 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. The Unconventional Prospective
Resources Estimates prepared by DeGolyer and MacNaughton were evaluated in accordance with the Petroleum
Resources Management System.
• ATP 560 U Eleven block was relinquished on 31 October 2013, under the relinquishment requirements of the work
program.
• ATP 794 Brightspot block was relinquished on 31 October 2013, under the relinquishment requirements of the work
program. Icon Energy remains the operator of the Regleigh and Springfield blocks in ATP 794.
• Icon Energy’s geothermal tenements EPG 49 and 51 were voluntarily surrendered during the year with approval being
granted for the surrender on 23 May 2014.
1
1