Australia: Icon Energy Provides Drilling Update on ATP626P

Icon Energy Limited today announced that Lydia-11 has been drilled to a depth of 915 metres. Using a 1.8 gm/cc density cutoff a cumulative total of 12 metres of coal was penetrated in the well. The deeper Taroom coals indicated a permeability of 10 millidarcies indicating that stimulation would be required to produce gas flows from this interval. Other tested intervals indicated lower permeabilities.

The four (4) well drilling program in ATP626P is designed to establish sweet spots where gas content, coal thickness and permeability are found to be of least risk and suitable for production testing.

The joint venture determined to not proceed with Lydia-11, which has now been plugged and abandoned, so that the Atlas Drilling Rig #2 can return to the Lydia-12 well, which was previously suspended awaiting the arrival of specialised equipment from Perth.

Following the drilling and testing of Lydia-12 the rig will move 11.0 kms to the southeast to drill Lydia-13.

[mappress]

Source: Icon Energy, May 24, 2011;