Icon Energy Ltd., Queensland, signed a non-binding letter of intent (LOI) and term sheet with Malaysian trust company RP Trust Inc. regarding potential farm-in and gas development in Icon’s 100%-owned permit ATP 855 in the southwest Queensland sector of Cooper basin.
The parties will negotiate a binding farm-in agreement and joint venture operations agreement on or before Dec. 1, 2022.
ATP 855 lies in the deepest part of the Nappamerri Trough containing the thickest sequence of prospective Permian-age sediments in the basin. The permit is prospective for conventional and unconventional oil and gas resources.
Gas has been discovered in six wells in the permit (Keppel-1, Redland-1, Geoffrey-1, Hervey-1, Etty-1, Halifax-1). Five have been fracture stimulated. All stimulated wells flowed gas to surface, with Halifax-1 recording a flow rate of 4.5 MMcfd.
Consultant DeGolyer and MacNaughton has estimated P50 unconventional prospective raw natural gas resources within the permit to be 28.5 tcf. Contingent 2C resources of 1.57 tcf have been estimated within defined areas surrounding the five tested wells.