Icon Energy's Eolus-1 CSG Well Gives Encouraging Results

Icon Energy has encountered encouraging coal seams at its Eolus-1 coal seam gas exploration well in the Surat Basin, Queensland. The well was spudded on May 21 and has reached a total depth of 1200 metres.

Wireline logs indicated the well had intersected 10.4 metres of net coal in the Walloon Coal Measures while 4 drill stem tests were conducted.

The individual coal seam thicknesses at this location are encouraging and the well will be cased and suspended pending further investigation of the optimal well completion technique, which may include horizontal drilling.

When Eolus 1 is completed, the Ensign Rig 960 will be released having completed the two well drilling campaign.

These wells were drilled in conjunction with, Goondi Energy as part of the farmin agreement and the Stage 2 work program for 2012 in which Goondi has earned an up-front 50% farmin interest in the wells.

The two wells are part of the second stage work program of farm-in to exploration permit ATP 626P.