Gold Coast listed company Icon Energy full-year results for 2017-18 reveal losses of $4.037 million

A GOLD Coast energy company chose the day of a Federal leadership challenge to release its full-year results, which contained a multimillion-dollar spill for shareholders.

Ray James, Icon Energy managing director. Picture: Mike Batterham

A GOLD Coast energy company chose the day of a Federal leadership challenge to release its full-year results, which contained a multimillion-dollar spill for shareholders.

Gas explorer Icon Energy has posted losses for at least the past five years, with the $7.8 million sale of their Broadbeach office failing to pull it into the black for 2017-18, for which it booked a $4.037 million loss.

The results said the company had to cease all exploration of its tenements in Victoria after that State Government banned fracking to extract gas.

Icon now has accumulated losses of $58.9 million, with its shares dropping below 2c during the year and its market capitalisation stagnant around $12.5 million.

However, the company maintains its issued capital is worth almost $102 million, and remains confident of finding an investment partner for its gas tenements in western Queensland.

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During the year, the board reduced the fees paid to non-executive directors by 20 per cent and restricted executive salary increases to CPI.

Managing director Ray James, also the company’s third largest shareholder, was paid $649,022 of the $1,840,830 remuneration cost.

The $7.1 million proceeds of the waterfront office sale were whittled away by writedowns and impairments.

The ASX-listed Icon bought the three-level building for $4.8 million in 2009, one of two adjoining office buildings developed by failed funder City Pacific and sold by receivers.

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The Icon Energy headquarters at Broadbeach Waters. Photo: Supplied

The company said it was in talks with “several farm-in partners” for its ATP855 Cooper-Eromanga Basin tenement.

It said “potential commercial areas” had been declared by the Department of Natural Resources and Mines across the entire 1679sq km tenement for a period of 15 years “reflecting Icon’s belief that the area is likely to be commercial within that time”.

Icon said “a significant natural gas resource” had been identified in the first stage of exploration of the tenement.

“The company is seeking domestic and international funding for the appraisal and development program for ATP 855,” the report said.

“Two gas pipelines run through the tenement, which carry gas to eastern state’s gas markets in Australia and to the LNG terminal at Gladstone.”

The company said it was planning technical work and field activity for the second stage of exploration for the tenement.

Icon leased its HQ building back for three years.