HISTORICAL DAY FOR ICON ENERGY

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.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

In an era when Australia’s mass-production car industry is a ...

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

It was a scandal that rocked the shaky foundations of Australia&rsq...