For some reason the PDF on their website doesn’t show the attached image whereas the ann’ on the ASX does?????????????????
Any hoo, looks like I was on the right track (however it looks more like 30 km’s to Moonie as opposed to 40 ).
“Stitch No. 1 (Expected spud date early October 2007)
Icon has selected a location for the drilling of Stitch No. 1 and is finalising a drilling Contract
with Century Drilling for this well. Stitch No. 1 will be drilled to test the hydrocarbon potential
of the Precipice Sandstone which is the same reservoir found in the Moonie Oilfield 40
kilometres to the north of the Stitch location. The trap is a three way closed fault dependent
structure. If the fault is a sealing fault and migration of hydrocarbons into the trap has occurred
then the potential oil reserves exceed that of the Moonie Oilfield, discovered in 1961, where oil
production was approximately 25 million barrels. At this point, we are unable to know ahead of
time if hydrocarbons are present in commercial quantities. Nearby wells Ballymena No.1 and
Widow No.1 penetrated significant oil and gas shows, which means that hydrocarbons are
present in the sedimentary rocks in this part of the Surat Basin.”
I like it, no BS and a big fat recoverable target.
“Icon holds a working interest in ATP 626P of 100% and a net revenue interest of 90% after
deduction of Government royalties of 10%. The Government royalty is calculated after
deducting operation and transportation costs. The interest held by Icon may be reduced to 75%
working interest, by way of farmout prior to the commencement of drilling.”
Icon presently have $4 million in the bank with $1.6 mil committed to this upcoming program.
The farmout of 25% will likely be for 50% of drill costs plus cost so far incurred on seismic (they say there is a lot of interest?).
This really caught my eye – from Qld gov’ petroleum exploration info’
(April this year)
“The recent application of new geological
concepts and the adoption of different
drilling technology have seen success rates
in the Bowen–Surat Basins rise to 59 per
cent this decade.”
So if we halve that to a 1 in 3 chance @ >20 mmbbls recoverable with 75% equity.
Or say a risked 6.5mm bbl @ $10.00 bbl x 75% = $48 million
Infrastructure all over the place.
MC @ 0.07c is $ 20 million