Icon Energy pinning hopes on Cooper Basin tenement to produce commercial gas reserves

GOLD Coast oil and gas explorer Icon Energy is counting on a tenement in the Cooper Basin to produce commercial gas reserves.

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

GOLD Coast oil and gas explorer Icon Energy is counting on a tenement in the Cooper Basin to produce commercial gas reserves.

Icon is on the hunt for a joint venture partner to help it realise the potential of its ATP855 tenement.

In its latest update, the Broadbeach based-explorer said it ended the quarter to March 31 with cash at hand of $11.1 million.

During the quarter, Icon took control of its ATP855 tenement in the Napamerri Trough after former partner Beach Energy withdrew.

It said a drilling program previously had confirmed “a significant natural gas resource” in ATP855.

It is waiting on the results of a 3D seismic survey by the end of May to further assess the tenement resources.

Icon said it has lodged an application with the Department of Natural Resources and Mines for eight areas in ATP855 to be declared Potential Commercial Areas to evaluate the potential production and market opportunities for the resource ahead of its next phase of exploration.

It has appointed agents to find a new source of finance and is seeking a joint venture partner to invest in ATP855.

“A significant natural gas resource was identified in the Stage 1 exploration program which is currently classified as a contingent gas resource,” Icon said.

“A Stage 2 exploration program will be designed specifically to address outstanding technical questions and determine the commercial viability of the gas resource.”

Icon said exploration in ATP855 now is “a priority focus” for the company.

It said it is confident that future exploration “will potentially lead to commercial gas reserves being proven within the permit, which could support the domestic market in eastern Australia and, ultimately, succeed in satisfying the special conditions required to finalise Icon’s gas contract with China”.

The company has bought back 21,160,565 shares for around $1.22 million as part of a share buyback program.

Icon plans to buy back up to 10 per cent, or 61.9 million shares.

Its shares closed unchanged at 2.8¢.