Icon Energy: Delivery of Ensign Rig 965 Delayed to Q3 2012 (Australia)

Today Beach Energy released a revised timetable showing that the delivery of the Ensign Rig 965 has been delayed to the third quarter 2012. 

Beach Energy is working closely with the drilling company to optimise the revised schedule. The delays are largely due to industrial disputes in the USA and delays due to weather conditions in Canada and the USA.

“We are very disappointed with news regarding the delayed delivery of Ensign Rig 965 and we fully understand that a lot of attention is being placed on Shale Gas exploration in the Cooper Basin. While we would have preferred a spud date this financial year, the Operator (Beach Energy) inform us the first well for Ensign Rig 965 is now expected to spud in Q3 2012”, said Ray James, Managing Director of Icon Energy.

Under the terms of the farmin arrangements:

– The well is to be cased and suspended, so that it is suitable for fracture stimulation (which is expected to occur within 30 days of rig release from the well);

-Beach will fund Icon Energy’s share of the farmin operations at an estimated cost of $16 million (gross), with the exception of a $1.75 million contribution to be made by Icon Energy; and

-The cost of fracture stimulation, completing and flow testing the well will be paid by the Joint Venture parties in proportion to their participating interest shares.

ATP855P is situated in the highly prospective Nappamerri Trough in the . The independent United States Energy Information Administration’s World Shale Gas Resources Report (EIA Report) has placed the shale gas resource potential in the Cooper Basin as a whole at 342 Trillion Cubic Feet (TCF) of gas, with the recoverable equivalent at some 85 TCF.

The Ensign Rig 965 will be used to assess the continuation of what is considered to be a thick, multi lithology gas accumulation which potentially extends into ATP855P from PEL218, located on the South Australian side of the gas rich Nappamerri Trough.

Icon Energy took a strategic decision to harness Beach’s established expertise in shale gas exploration and drilling in the Nappamerri Trough section within ATP855P, in which Icon Energy is to largely be carried. Given the recent drilling results in the adjacent PEL218 tenement the company is hopeful of a successful result in ATP855P.

Beach Energy (the Operator) in ATP855P has completed the 420km Gallus 2D Seismic Survey. This seismic acquisition will allow better evaluation of the geological structures within the tenement.

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LNG World News Staff, April 17, 2012