Icon Energy (ICN)

Shares / Stock Code

ICN

Stock Exchange / Sharemarket

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Icon Energy (ICN) has built an extensive oil and gas exploration portfolio in the Cooper-Eromanga and Surat-Bowen basins of Queensland. The company also has interests in the USA. ICN was listed on the ASX on 22 September 1997. Its head office is situated in Queensland.

Some of the active mining tenements held by the Company and its subsidiaries include ATP 549P, ATP 594P, ATP 855P, PEL 218, ATP 560, EPG 49 and EPG 51 in the Cooper Eromanga area; ATP 794P in the Cooper Eromanga Regleigh and Springfield areas; ATP 794P in the Cooper Eromanga Brightspot area, and ATP 626P and ATP 849P in the Surat area.

ATP 626P is the Company's prime asset located in the Surat Basin in Queensland. In August 2009, the Company participated in a single well in PEL 218, which was the last of its commitment to earn a 33.3% interest in the tenement.The block covers the South Australian side of the Nappameri Trough. Three petroleum licenses lie within the block and are not part of Icon's interest. The Ballera to Moomba gas pipeline traverses the centre of the block.

The geographical spread of ICN's exploration projects provides a degree of diversification that is necessary in managing the risk involved in oil and gas exploration.

Oil is sold to the nearest refinery at the spot price, while gas tends to be sold on long term contracts with price escalators linked to inflation. Because of the global nature of the oil market, every oil producer is a competitor. For gas producers, competition is much more localised and depends on pipeline access to markets. Key competitors include Rio Tinto, BHP, CH4 Gas Ltd (CHX) and Bounty Oil & Gas (BUY).