ABN 61 058 454 569
ICON ENERGY LIMITED
2015 Annual Report
33
DIRECTORS’ REPORT
• The remaining wells in the tenement are Eolus-1, Mindagabie-1 and Stitch-1, which are currently suspended.
• A technical review of the remaining prospectivity of the permit is currently nearing completion.
PEP 170, 172 and 173 Gippsland BasinVictoria
On 24 August 2012 the Victorian Government declared a moratorium on fracture stimulation of unconventional gas wells in
Victoria. As at the end of the reporting period the Victorian Government had not lifted the moratorium. Icon has deferred its
work program in Victoria until the suspension has been lifted.
Corporate
• Icon Energy held the Company’s 2014 Annual General Meeting on 24 November 2014 with all resolutions adopted on a
show of hands.
• On 26 February 2015, the Company announced it intended to undertake an on-market share buy-back over the next 12
months of up to 10% of Icon Energy ordinary shares on issue, totalling up to 61.9 million shares. The buy-back provides Icon
with an opportunity to strengthen the Company’s capital position at a cyclical low point in the resources market and also
demonstrates the Board’s strong belief in the underlying value of the Company’s assets. The timing and actual number of
shares purchased under the buyback will depend on the prevailing share price, market conditions and other considerations.
The Company reserves the right to suspend or terminate the buy-back at any time and to buy-back less than the full amount
of 61.9 million shares. All shares purchased will be cancelled.
• Icon and Shantou SinoEnergy Co Ltd, of the Peoples’ Republic of China, have agreed to extend the completion date for
conditions precedent in the GSA to 30 June 2018. The Shantou SinoEnergy Gas Sale Agreement is for a total of 40 million
tonnes of LNG, (2Mtpa) for 20 years.
Research and Development Activity
Icon Energy lodged a Research and Development (
R&D
) claim for the full year ended 30 June 2014. In November 2014, Icon
Energy received a Research and Development (
R&D
) tax rebate of $11.3 million.
Icon Energy is currently in the process of preparing another R&D claim for the full year ended 30 June 2015. This claim will
cover activities carried out in one project area ATP 855 in the Nappamerri Trough, Cooper Basin in south west Queensland.
The overall technical objective of this project is to develop new methods and techniques that enable gas to be extracted
efficiently from the deep Nappamerri Trough. Deloitte’s will be assisting Icon in the preparation and lodgement of this claim.
