Page 9 - Icon Energy 2014 Annual Report

ABN 61 058 454 569 ICON ENERGY LIMITED 2014 Annual Report 9
REVIEW OF OPERATIONS
This financial year has seen the highest expenditure on research and development and exploration in the Company’s history,
$23.04 million with the majority of this expenditure in ATP 855. The Company is focussing its capital and human resources
on developing technologies and processes to extract the natural resources from within ATP 855, the acreage that has the
greatest potential to grow shareholder value and is an integral component of the research and development program.
During the financial year the Company concentrated the bulk of its efforts and resources on meeting the work program
commitments in ATP 855 in the Cooper Basin. The results from the drilling campaign were encouraging and set the stage for
completion of the stimulation and flow testing program which commenced in September 2014.
The Company took the opportunity during the year to rationalise its interest in other tenements. Following a strategic review
of ATP 626, Icon relinquished 20 sub-blocks in the southern portion of the tenement, completed rehabilitation of former joint
venture wells and lodged a later work program.
In keeping with its operational strategy to focus resources on ATP 855, the Company divested its interest in some non-core
less prospective tenements during the year including ATP 560 U-Eleven, ATP 849 and EPG’s 49 and 51. At the same time
Icon consolidated its interests in ATP 594 in the Cooper Basin and ATP 626 in the Surat Basin where Icon now holds a 100%
interest in these tenements.
Icon will consider its deferred work program in Victoria should the moratorium on fracture stimulation of unconventional gas
wells be amended.
ATP 855 COOPER BASIN, QUEENSLAND
Icon Energy holds 35.1% equity in ATP 855 covering 414,000 acres and is located on the Queensland and South Australia
border. The current interests in ATP 855 are Beach Energy Limited (Operator) 46.9%, Chevron Australia 18% and Icon Energy
35.1%.
Map showing the location of ATP 855 and the current well locations in the Cooper Basin, Queensland