ICON SEIZES ON DOWNTURN TO BUY BACK SHARES

Written on the 26 February 2015 by Nick Nichols

ICON SEIZES ON DOWNTURN TO BUY BACK SHARES

ICON Energy's (ASX: ICN) shrinking share price has prompted the Gold Coast-based gas explorer to undertake a buyback of up to 10 per cent of its stock on issue.

The buyback comes on the heels of Icon this week reporting it held $20.97 million in cash after posting an $8.19 million profit for the December half.

The profit was driven by an $11.36 million income tax benefit and compares with a $2.8 million loss a year earlier.

Icon's shares slipped to a low of 7.3c in recent weeks as the company continues to wait out results from test drilling its potentially lucrative gas deposit in the Nappamerri Trough along the Queensland and South Australian border.

Icon is yet to determine the commercial viability of the ATP 855 permit which is being drilled by joint venture partner Beach Energy (ASX: BPT).

The company's shares have settled above 8c but traded as high as 18.5c over the past year.

"Our cash position is sufficient to meet our near-term exploration and administrative commitments and we retain the ability to pursue valuable growth opportunities that may arise in the near future," says Icon's managing director Ray James (pictured).

"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 values of the company's assets," he says.

Icon intends buying back and cancelling up to 61.9 million of its shares over 12 months from March 12.

Meanwhile, Beach Energy this week revealed it had completed stage one of the drilling program within the ATP 855 permit with stage two set to start in March.

Beach managing director Reg Nelson says the drilling program had achieved all technical objectives and collected a significant volume of date as "we continue to progress our understanding of this deep gas play".

"Should the ultimate goal of commercialisation be achieved, the Nappamerri Trough natural gas resource will be uniquely positioned to service east coast gas market demand for many years to come," he says.


Author: Nick Nichols

Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter