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ICON Energy (ICN) shares jumped 20 per cent today after the Gold Coast oil and gas explorer announced gas flows from its Halifax-1 well in Queensland’s Cooper Basin.
Icon says gas is flowing at a constrained rate of 2.23MMscfd, but it anticipates the unrestricted gas flow rate will increase as the choke is opened further and stimulation fluid is reduced.
Halifax-1 is a joint venture between Icon (40 per cent) and Beach Energy (60 per cent).
Icon’s managing director Ray James (pictured) says this is a significant find that puts Icon on the path to becoming an energy producer.
Halifax-1 is the first of six shale gas wells planned for the ATP 855 permit.
“We are eager to see the flow test results over the next few weeks as the stimulation fluid is flowed back leading to a stabilised flow rate,” says James.
“We look forward to working with Beach in developing this resource.”
Icon’s shares jumped as high as 24c on the news from a low of 20c. They closed at 22.5c with 6.7 million shares changing hands.
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