ICON Energy has inherited a 100% interest and operatorship of ATP 855 in the Cooper Basin and will now be seeking commercial partners to pursue its ambitions for the Nappamerri Trough gas play.
This development emerged after protracted negotiations between Beach Energy, which had drilled seven wells in ATP 885P, just over a year after supermajor Chevron had lost its appetite for the shale gas prospect in southwest Queensland.
Beach has quit leaving Icon Energy no costs apart from well remediation expenses for a dry gas prospect with high CO2 and a challenging subsurface environment linked to high-pressure and temperatures.
Icon’s Managing Director, Mr Ray James, said, “Beach Energy had made a huge contribution to the ATP 855 Joint Venture over the last few years and Icon fully appreciates the reasons for their departure, and we sincerely thank them for their efforts.
“The Joint Venture had carried out an extensive program of work and identified a very significant gas resource, following the drilling, completion and testing of six wells. Assuming 100% of ATP 855 represents an outstanding opportunity for Icon”.
“Icon is now seeking a suitable partner to invest in the ATP 855 Nappamerri Trough natural gas project. The significant natural gas resource identified in Stage 1 is currently classified as a contingent gas resource. The Stage 2 program will be designed specifically to address outstanding technical questions and determine the commercial viability of the gas resource”.
The joint venture previously encountered petroleum discoveries in all six wells it drilled, achieving the highest gas flow rate of 4.5MMscf/d from a shale gas well (Halifax-1) in the Cooper Basin.
Icon Energy said It had identified a significant natural gas resource within the Permian Formations of the Nappamerri Trough.
“In the five wells that flowed gas to surface, the flow tests were designed to evaluate the performance over specific zones in the wells and several horizons remain untested in some of these wells.
“Following the drilling, stimulation and testing of the wells in ATP 855, the resultant data was fully evaluated in preparation for the planning of the Stage 2 exploration program. Icon will now work on preparing for this next stage of activity over the coming year, which will become a focus area for the Company.”
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20/03/2017
