10
ICON ENERGY LIMITED
2015 Annual Report ABN 61 058 454 569
Summary of ATP 855 Drilling, Stimulation andTesting Results
Test results confirmed that at least 93% of the gas flow was being produced from the single interval stimulation in the
Daralingie Formation. This new play has earmarked Etty-1 as a priority target for further appraisal (subject to Joint Venture
approval). Etty-1 was shut in on 15 January 2015 on pressure build up.
The hydraulic stimulation at Redland-1 commenced on 28 October 2014 with three zones stimulated in the Toolachee
Formation. However, a mechanical issue in the Redland-1 wellbore has prevented the Joint Venture from assessing the
deliverability of these zones. The well has now been shut in.
The fracture stimulation program at Geoffrey-1 commenced on 12 November 2014 with four zones in the Patchawarra
Formation and one zone in the Epsilon Formation.
Extended flow testing began on 7 December 2014 with Geoffrey-1 reaching a peak flow rate of 1.1MMscf/d via a 12/64â€
choke and a wellhead pressure of 3,058psi. Gas analysis was measured with a methane content of 75% and CO
2
content of
25%.
The hydraulic stimulation and testing program achieved its objective of obtaining diagnostic gas flows and decline rates from
specific formations within the Permian sequence.
On 27 March 2015 Icon announced that Beach Energy Limited, in its capacity as Operator of the ATP 855 Joint Venture, had
engaged DeGolyer and MacNaughton, a well-respected and qualified international petroleum reserve and resource evaluation
company, to undertake an update and provide a report on the Contingent Resources estimated in ATP 855. This report was
an update of the report on Contingent Resources estimated in the areas around the Halifax-1 well prepared by DeGolyer and
MacNaughton in 2013, results of which were announced by Icon Energy on 26 August 2013.
The report prepared by the consultants in respect of the estimated Contingent Resources attributable to ATP 855 had been
disclosed by Beach Energy to Icon Energy, and the estimated Contingent Resources as at 31 December 2014 are as follows:
OPERATIONS REPORT
Contingent resources are those quantities of wet gas (produced gas minus carbon dioxide) that are potentially recoverable from known
accumulations but which are not considered to be commercially recoverable due to the need for additional delineation drilling, further
validation of deliverability and Original Hydrocarbon in Place (OHIP), and confirmation of prices and development costs.This is based on a
statistical aggregation method using Monte Carlo simulation estimates for each formation.
1
1C (Bcf)
343
2C (Bcf)
1,572
Gross Contingent Resources
1
3C (Bcf)
5,841
Well
Total Depth
Gas Shows
Stimulation stages
2C Contingent
Resources (gross)
Max. flow rate
Comments
Halifax-1
4,267m
Yes
14
Keppel-1
3,898m
Yes
N/A
4.5MMscf/d
1.1MMscf/d
Etty-1
3,807m
Yes
4
Initial flow
rate show
93% of gas
primarily from
the Daralingie
Formation
Highest gas
flow rate from
unconventional
shale gas and
tight sands
well in Cooper
Basin
Geoffrey-1
4,125m
Yes
5
Flow rate
heavily choked
back at 12/64â€
with well head
pressure of
3,058psi
Hervey-1
4,269m
Yes
5
Initial flow rate
from 5 stages
Redland-1
3,804m
Yes
3
Mechanical
issues
prevented
on going
extended flow
test
Flowed gas
to surface
unstimulated
Flowed gas
to surface
unstimulated
Flow rate of
0.9MMscf/d
primarily from
a single stage
Flow rate of
0.6MMscf/d
Flow rate of
0.1MMscf/d
Halifax-1, Hervey-1, Etty-1, Redland-1 and Geoffrey-1
1,572 Bcf
