Gold Coast oil and gas explorer Icon Energy announces Cooper Basin testing

A sluggish oil and gas explorer has fuelled the hopes of investors with the announcement it has begun testing of a potentially lucrative site.

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SLUGGISH Gold Coast oil and gas explorer Icon Energy has fuelled the hopes of investors with the announcement it has begun testing of a potentially lucrative site in the Cooper Basin.

Icon said it started testing the Halifax No. 1 well at its ATP855 tenement on December 30 after delays caused by waiting for specialised equipment to come from the US.

A gas well being drilled in the Otway Basin off Australia. File image.

It expects the operation for the “exciting gas prospect” to take 35 days subject to weather and other constraints.

The announcement saw the Icon stock price rise 20 per cent earlier this month to 1.8 cents before falling back and closing at 1.7c on Friday.

“If the test is successful, then the well can be suspended as a producing gas well,” chairman Stephen Barry told investors at the company’s annual meeting in December.

“A full investigation of the results of the well would then be undertaken to determine the commerciality of the well.”

The Halifax well remains Icon’s top priority but stage two will require funding for drilling to progress.

Ray James, managing director, speaks during an Icon Energy annual general meeting held on the Gold Coast. Picture: Regi Varghese

Icon has struggled to find the partner it needs for ATP 855, located in the Nappamerri Trough in the Cooper Basin.

It needs a company to chip in between $20m and $30m to the gas resource potentially worth $700m.

The announcement that testing was going forward follows a major restructure in 2019 where soaring staff costs were slashed.

The company also recently moved to new offices in Varsity Lakes.

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