HISTORICAL DAY FOR ICON ENERGY

Written on the 13 October 2010

HISTORICAL DAY FOR ICON ENERGY

COAL seam gas explorer Icon Energy (ICN) has been granted a key petroleum tenement in far western Queensland by the State Government.

The tenement ATP 855P is located within the rich Nappamerri Trough on the Queensland and South Australian border and is adjacent to Icon Energy’s interest in PEL 218 in South Australia.

Icon Energy managing director Ray James, described the grant as an ‘historic milestone’ for the Broadbeach-based company.

“The grant of ATP 855P has been pivotal to Icon Energy’s gas strategy in the Cooper Eromanga Basin. The industry estimates a possible 200 trillion cubic feet (TCF) of gas may be in place in the Nappamerri Trough alone”, he says in a statement to the ASX.

“The Nappamerri Trough is driving the industry’s focus on shale gas in Australia. Coal Seam Gas is another primary target within the Trough in PEL 218 and ATP 855P where Icon has interests.

“The grant of ATP 855P now places Icon into a significant shale gas play. Icon was an original applicant for the tenement and has interests at all stratigraphic levels within the permit.”

James says discovery of commercial fields in the tenements would significantly contribute to the LNG Sale and Purchase Agreement (LNG SPA), which is due for finalisation with China’s Shenzhen Sino Industrial
Development Co., Ltd (Shenzhen SinoGas) by the end of the year.

Under the LNG SPA, Icon Energy would be contract to supply 40 million tonnes of LNG (liquefied natural gas) to Shenzhen SinoGas over a 20-year term.

“It is open to Icon to put together the necessary supply arrangements, so in working to secure the opportunity, we are focused on several strategic business initiatives available to the company,” he says.

The award of ATP 855P is also important as an historical milestone, as it follows the negotiation of a landmark Native Tile Deed, after Icon Energy and the Wongkumarra People completed a successful Right to Negotiate (RTN) process for the tenement.

“Under the agreement the local indigenous owners will receive 50,000 shares in Icon Energy as part of the sign on payment under the agreement,” says James.

Icon shares remained unchanged at 0.18c.


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