Australia: Icon Updates on Halifax 1 Drilling

August 23, 2012

Icon Energy provided an update in relation to the drilling of the Halifax 1 well in ATP 855P, located in the Cooper Basin, Queensland.

As of 23rd August 2012 the Ensign 916 rig has drilled the 12-¼ inch intermediate hole section to 2611 metres in the Nappamerri Formation, and has conducted wireline logging operations.

The forward plan is to run and cement the 9-⅝ inch intermediate casing.

Halifax 1, a vertical exploration well will evaluate the shale gas and basin-centred gas potential in the REM and Patchawarra Formation intervals within the Queensland portion of the Nappamerri Trough.

The Halifax 1 vertical exploration details:

Located 12 kilometres to the northeast of Encounter 1;
Extensively cored, with evaluation of the whole Permian section down to the base of the Patchawarra Formation;
Used to identify the best targets for a future horizontal well;
Fracture stimulated and flow tested through multiple zones, with a material contingent resource expected to be booked; and
Will be used for micro-seismic monitoring of a future horizontal well.

“There is little reason why the 300 TCF plus of gas in place estimated for PEL 218, cannot be replicated in ATP 855P”, Icon Energy Managing Director Mr James said.

The financial terms of the farm-in will be the equivalent of those agreed previously with Beach to fulfil the terms of the Farmout agreement by funding the first $16 million relating to Halifax 1, or until the cost of completion, less a $1.75 million contribution from Icon Energy Limited.

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LNG World News Staff, August 23, 2012