ABN 61 058 454 569
ICON ENERGY LIMITED
2015 Annual Report
31
DIRECTORS’ REPORT
Notices of Petroleum Discovery were lodged with the Department of Natural Resources and Mines (
DNRM
) for all of the six
wells drilled.
ATP 855 Joint Venture Stage 1
The Stage 1 2014 multi-well stimulation campaign in ATP 855 commenced in September 2014. Key target reservoirs in
Hervey-1, Etty-1, Redland-1 and Geoffrey-1 were stimulated and flow tested.
• The program commenced at Hervey-1 on 15 September 2014 with the hydraulic stimulation of five zones: one in the
Patchawarra Formation; one in the Daralingie Formation; and three in the Toolachee Formation. The well was opened to
flow on 22 October 2014 at 0.4MMscf/d and 50psi wellhead pressure through a 22/64†choke. The extended flow test was
completed on 28 November 2014 after the flow rate had reduced to 0.2MMscf/d through a 40/64†choke and wellhead
pressure of 27psi.
• The fracture stimulation program at Etty-1 commenced on 11 October 2014 with one zone in the Daralingie Formation and
three zones in the Toolachee Formation. Etty-1 was subsequently put on extended flow test for 77 days flowing between
900,000 and 700,000 cubic feet per day and has demonstrated strong flow characteristics with better than forecast decline
rates. Total flow during this period was 57 million standard cubic feet of gas with an approximate methane content of 70%
and CO
2
content of 30%. 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.
• The fracture stimulation at Redland-1 commenced on 28 October 2014 with three zones targeted 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 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 of gas via a 12/64†choke and a wellhead pressure of 3,058psi. Gas analysis
indicates an approximate methane content of 75% and CO
2
content of 25%.
Stage 1 achieved all the exploration and technical objectives that were set by the Joint Venture partners. The Joint Venture is
currently in the process of preparing a work program for the next phase of activity.
