Icon Energy to Drill Five Wells

Icon Energy has signed a drilling contract with Ensign International Energy Services for the Ensign Rig 960 which will begin drilling two wells, Eolus-1 and Windom-1, in ATP626P in Queensland and the first well is expected to spud in early May 2012. These two wells will bring total number of wells to be drilled to five.

The company also plans to drill its first wells, Tiger West-1 and Dragon-1, in Victoria within its PEP170 tenement. These two wells are expected to have gas potential of more than 1 TCF.

First well, Halifax-1 for Ensign Rig 965 is expected to spud in the third quarter of 2012. Icon Energy have a 40% interest and Beach Energy are farming in to earn a 40% interest in ATP855P in addition to the 20% interest they already hold.

ATP855P is situated in the highly prospective Nappamerri Trough in the Cooper Basin. The independent United States Energy Information Administration’s World Shale Gas Resources Report (EIA Report) has placed the shale gas resource potential in the Cooper Basin as a whole at 342 Trillion Cubic Feet (TCF) of gas, with the recoverable equivalent at some 85 TCF.

The Ensign Rig 965 will be used to assess the continuation of what is considered to be a thick, multi-lithology gas accumulation which potentially extends into ATP855P from PEL218, located on the South Australian side of the gas rich Nappamerri Trough.

In addition to our 5 well drilling program we plan to undertake over 600 km of 2D seismic acquisition 400 km in PEP 170 in Victoria and 200 km in ATP849P in Queensland.