ABN 61 058 454 569
ICON ENERGY LIMITED
2015 Annual Report
5
In June 2014, DeGolyer and MacNaughton
provided Beach and Icon with a report on the Gross
Unconventional Prospective Natural Gas Resources
over the entire area of ATP 855, with a most likely (P50)
Prospective Gas Resource of 28.49 TCF.
The Stage 2 program could raise the 2C Contingent
Resource to the category of 2P Reserves. This would
require demonstration of commercial flow rates, an
infrastructure development plan and market contract for
the gas. On 26 June 2015, Icon extended the Gas Sales
Agreement with Shantou Sino Energy Co Ltd until 30
June 2018. This time frame is now our best estimate
for reaching the 2 TCF reserve estimate needed to
satisfy Icon’s primary contract condition. Stage 2 of the
research and development program, subject to Joint
Venture approval, will be aimed at progressing towards
confirming gas commerciality.
At the end of the 2015 financial year, Icon was in a strong
cash position to go forward with Stage 2. Beach Energy
has advised that prior to commencing a Stage 2 work
programme, a new farmin partner is required to replace
Chevron. Icon retains its 35.1% working interest in the
ATP 855 Joint Venture.
On 28 February, Icon announced that it intended to
undertake an on-market share buy-back (
Buy-back
) over
the next 12 months of up to 10% of Icon ordinary
shares on issue (ie up to 61.9 million shares). The Buy-
back provided 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. Burrell Stockbroking is acting as the
transaction broker in relation to the Buy-back and a total
of 16,207,299 shares purchased under the Buy-back have
subsequently been cancelled.
Elsewhere in the Cooper Basin, Icon has revived a
suspended permit area in ATP 594. The permit is located
on the highly prospective eastern flank of the Cooper
Basin which has been lightly explored in past years. This
eastern flank of the Basin contains the Jackson Oilfield,
which is the largest oil discovery in Queensland. The
significant Kenmore and Bodalla South oilfields lie just
to the east of ATP 594. Oil production from the area is a
light diesel like crude which is refined in the Eromanga
township and diesel distributed from there by IOR
Energy Pty Ltd. A refining market exists in the area with
the refinery capacity only 55% utilised. The Department
of Natural Resources and Mines has renewed the ATP
594 permit for an initial period of four years but with
opportunity to apply for renewals of up to a total of
twelve years.
3D seismic acquisition is planned in Stage 1 exploration
for ATP 594. This is anticipated in late 2015, depending on
Pictured: Mr Stephen Barry, Chairman and Non-Executive Director of Icon Energy Limited.
