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Is this a typo or a big dilution for ICN holders
John
From todays Ann. ICN - STO.
John
ICN - Icon Energy
- Thread starter NettAssets
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- icn icon energy
Think Santos being a shareholder is vote of confidence in ICN. Management doesn't do very good job of self promotion though. I like ICN for 3 projects, the upcoming wells by Santos (news could come any time), Acquisition of their own drill rig next year (will give ability to farm in), and upcoming US drilling. Think the patient will be rewarded here and I'm looking to top up at current levels.
I have researched ICN in depth and I believe it is the oil stock that offers the greatest leverage in the event of a discovery, however, it gets better because of the risk/reward ratio . That means the wells that Santos will be drilling appear to be relatively low risk in a good area that Santos and ICN know very well so this would be classified in the industry as low risk/high reward drilling program. It does not get any better than this for those that want to take a calculated risk. Adding to this is the quality and experience of the management team.Few investors take this into account when buying shares and forget that there are many companies around that are run by wood-ducks who are in it for the lifestyle. ICN is in it to build a mid size oil company .
Dustman
Dustman
I agree with that dustman, although I've only been looking at projects, don't know anything re management, although their lack of spruiking themselves a plus in my book. Any other plays you like in energy sector?. To me thats still the only place to be despite recent drop in oil price, I'm in for long term so not concerned in that regard.
Anyone want to comment on this old warhorse?
(Kenna's
)
Commencing a 100% held 25 million bbl target early Oct (recoverable).
Have quite a substantial project in the states but their partner (operator) seems a cowboy outfit and got belted in the New Orleans Hurricane (imo only).
I imagine the issues will be rectified soon however and would expect more action early 2008 (target is actually a shoulder of the US homeland reserve).
Drilling two CSM targets next month, although these will take some time to dewater and flow (if their going too) but the ground is also prospective.
Recent talk regarding buying into some indo' resources (production wells) and prospective leases- likely to blow out shares on issue from 250 mil to 360 ish (from memory) however other projects represent supporting value.
I see this as similiar to CVN @ 5-7c?
May be falling into buy territory atm (imo)
(Kenna's
)Commencing a 100% held 25 million bbl target early Oct (recoverable).
Have quite a substantial project in the states but their partner (operator) seems a cowboy outfit and got belted in the New Orleans Hurricane (imo only).
I imagine the issues will be rectified soon however and would expect more action early 2008 (target is actually a shoulder of the US homeland reserve).
Drilling two CSM targets next month, although these will take some time to dewater and flow (if their going too) but the ground is also prospective.
Recent talk regarding buying into some indo' resources (production wells) and prospective leases- likely to blow out shares on issue from 250 mil to 360 ish (from memory) however other projects represent supporting value.
I see this as similiar to CVN @ 5-7c?
May be falling into buy territory atm (imo)
Attachments
Please disregard this from the last post- In digging around today I found the Hang Seng inspired meltdown in May put an end to the farmin
.So 280million shares it is (not 250).
Any of you east coast dudes tell me how I can locate petroleum exploration license ATP 626 anywhere? (south Qld)
I think I may have found it (see below) but have been unable to put any numbers to the petroleum expl' area's.
Any tech' input on the chart also appreciated.
Cheers
Attachments
OK,
Going from the "40 km south of the Moonie oilfield, lookalike structure etc". From ICN's ann's.
I figure I must be on the right track.
Have highlighted the Moonie faults in yellow that overlay the green production wells and also the large faults that cross into the basin 40km south.
The target must be in here somewhere I reckon.
The green shaded area is the Surat sedimentary basin and therefore the large fault continuing down from the Moonie field is providing the traps where crossed.
Start investigating CSG plays and I'm off on another oiler
Going from the "40 km south of the Moonie oilfield, lookalike structure etc". From ICN's ann's.
I figure I must be on the right track.
Have highlighted the Moonie faults in yellow that overlay the green production wells and also the large faults that cross into the basin 40km south.
The target must be in here somewhere I reckon.
The green shaded area is the Surat sedimentary basin and therefore the large fault continuing down from the Moonie field is providing the traps where crossed.
Start investigating CSG plays and I'm off on another oiler
Attachments
Couple of interesting graphs representing the CSG boom of late.
When contrasted with the exploration wells drilled, the development wells are certainly skyrocketing.
Interesting also on the petroleum side with a reasonable number of wells drilled (compared to WA anyway) but still 60% of them for development.
I would have thought with the infrastructure in Qld a lot more would have been put down with the rise in OP?
When contrasted with the exploration wells drilled, the development wells are certainly skyrocketing.
Interesting also on the petroleum side with a reasonable number of wells drilled (compared to WA anyway) but still 60% of them for development.
I would have thought with the infrastructure in Qld a lot more would have been put down with the rise in OP?
Attachments
Natasha No. 1 and Lydia No. 1 (Spud date first week in October 2007 for Natasha No.1)
Icon Energy Limited has signed a Contract with Mitchell Drilling to drill two coal bed methane
(CBM) wells, back to back, in ATP 626P. These CBM wells to be known as Natasha No. 1 and
Lydia No. 1 have been selected in areas where previous wells drilled in the 1960s encountered
significant coal intersections within the Jurassic Walloon Coal Measures. Natasha No. 1 will be
drilled within 50 metres of Thompson No. 1 which penetrated a total coal thickness exceeding 30
metres within the Walloons. Lydia No. 1 is to be drilled approximately 800 metres north of
Yarrill Creek No. 1, which penetrated in excess of 45 metres of coal within the Walloons.
Queensland's petroleum (April 2007) 7
www.dme.qld.gov.au
"Queensland’s known coal seam gas
resources are confined largely to the
extensive coal resources in the Bowen
Basin and the adjoining and overlapping
Surat Basin to the south."
"The first significant sale of gas from the
Walloon Coal Measures in the Surat Basin
was contracted in 2001."
Sounds like the 'Walloon' coal measures are a good place to start.
Particularly like the way gas/oil fields follow the external perimeter of the Surat basin.
Icon Energy Limited has signed a Contract with Mitchell Drilling to drill two coal bed methane
(CBM) wells, back to back, in ATP 626P. These CBM wells to be known as Natasha No. 1 and
Lydia No. 1 have been selected in areas where previous wells drilled in the 1960s encountered
significant coal intersections within the Jurassic Walloon Coal Measures. Natasha No. 1 will be
drilled within 50 metres of Thompson No. 1 which penetrated a total coal thickness exceeding 30
metres within the Walloons. Lydia No. 1 is to be drilled approximately 800 metres north of
Yarrill Creek No. 1, which penetrated in excess of 45 metres of coal within the Walloons.
Queensland's petroleum (April 2007) 7
www.dme.qld.gov.au
"Queensland’s known coal seam gas
resources are confined largely to the
extensive coal resources in the Bowen
Basin and the adjoining and overlapping
Surat Basin to the south."
"The first significant sale of gas from the
Walloon Coal Measures in the Surat Basin
was contracted in 2001."
Sounds like the 'Walloon' coal measures are a good place to start
.Particularly like the way gas/oil fields follow the external perimeter of the Surat basin
.Attachments
OK everyone you can stop looking now, I've found it.
For some reason the PDF on their website doesn't show the attached image whereas the ann' on the ASX does?????????????????
Any hoo, looks like I was on the right track (however it looks more like 30 km's to Moonie as opposed to 40
).
"Stitch No. 1 (Expected spud date early October 2007)
Icon has selected a location for the drilling of Stitch No. 1 and is finalising a drilling Contract
with Century Drilling for this well. Stitch No. 1 will be drilled to test the hydrocarbon potential
of the Precipice Sandstone which is the same reservoir found in the Moonie Oilfield 40
kilometres to the north of the Stitch location. The trap is a three way closed fault dependent
structure. If the fault is a sealing fault and migration of hydrocarbons into the trap has occurred
then the potential oil reserves exceed that of the Moonie Oilfield, discovered in 1961, where oil
production was approximately 25 million barrels. At this point, we are unable to know ahead of
time if hydrocarbons are present in commercial quantities. Nearby wells Ballymena No.1 and
Widow No.1 penetrated significant oil and gas shows, which means that hydrocarbons are
present in the sedimentary rocks in this part of the Surat Basin."
I like it, no BS and a big fat recoverable target.
"Icon holds a working interest in ATP 626P of 100% and a net revenue interest of 90% after
deduction of Government royalties of 10%. The Government royalty is calculated after
deducting operation and transportation costs. The interest held by Icon may be reduced to 75%
working interest, by way of farmout prior to the commencement of drilling."
Icon presently have $4 million in the bank with $1.6 mil committed to this upcoming program.
The farmout of 25% will likely be for 50% of drill costs plus cost so far incurred on seismic (they say there is a lot of interest?).
This really caught my eye - from Qld gov' petroleum exploration info'
(April this year)
"The recent application of new geological
concepts and the adoption of different
drilling technology have seen success rates
in the Bowen–Surat Basins rise to 59 per
cent this decade."
So if we halve that to a 1 in 3 chance @ >20 mmbbls recoverable with 75% equity.
Or say a risked 6.5mm bbl @ $10.00 bbl x 75% = $48 million
Infrastructure all over the place.
MC @ 0.07c is $ 20 million
For some reason the PDF on their website doesn't show the attached image whereas the ann' on the ASX does?????????????????
Any hoo, looks like I was on the right track (however it looks more like 30 km's to Moonie as opposed to 40
)."Stitch No. 1 (Expected spud date early October 2007)
Icon has selected a location for the drilling of Stitch No. 1 and is finalising a drilling Contract
with Century Drilling for this well. Stitch No. 1 will be drilled to test the hydrocarbon potential
of the Precipice Sandstone which is the same reservoir found in the Moonie Oilfield 40
kilometres to the north of the Stitch location. The trap is a three way closed fault dependent
structure. If the fault is a sealing fault and migration of hydrocarbons into the trap has occurred
then the potential oil reserves exceed that of the Moonie Oilfield, discovered in 1961, where oil
production was approximately 25 million barrels. At this point, we are unable to know ahead of
time if hydrocarbons are present in commercial quantities. Nearby wells Ballymena No.1 and
Widow No.1 penetrated significant oil and gas shows, which means that hydrocarbons are
present in the sedimentary rocks in this part of the Surat Basin."
I like it, no BS and a big fat recoverable target.
"Icon holds a working interest in ATP 626P of 100% and a net revenue interest of 90% after
deduction of Government royalties of 10%. The Government royalty is calculated after
deducting operation and transportation costs. The interest held by Icon may be reduced to 75%
working interest, by way of farmout prior to the commencement of drilling."
Icon presently have $4 million in the bank with $1.6 mil committed to this upcoming program.
The farmout of 25% will likely be for 50% of drill costs plus cost so far incurred on seismic (they say there is a lot of interest?).
This really caught my eye - from Qld gov' petroleum exploration info'
(April this year)
"The recent application of new geological
concepts and the adoption of different
drilling technology have seen success rates
in the Bowen–Surat Basins rise to 59 per
cent this decade."
So if we halve that to a 1 in 3 chance @ >20 mmbbls recoverable with 75% equity.
Or say a risked 6.5mm bbl @ $10.00 bbl x 75% = $48 million
Infrastructure all over the place.
MC @ 0.07c is $ 20 million
Attachments
I was good to get $4.5m for sale of leases to Santos which cashed up the coy to drill Stitch. I dont know the possibilities of the leases sold , but a % of free carry may have been a good idea? The coy duration on gas production after dewatering is a few years for "maybe" (see ann), a bit long to tie up invest funds. The time frame for drilling Stitch (2000m) seems to be a "reasonably risk" for investing, after Valentine 1 CB, free up $'s . The geology sounds promising if its can be proven. Not holding ATM but waiting for opportunity.
DYOR
Cheers
. The geology sounds promising if its can be proven. Not holding ATM but waiting for opportunity. DYOR
Cheers
I was good to get $4.5m for sale of leases to Santos which cashed up the coy to drill Stitch. I dont know the possibilities of the leases sold , but a % of free carry may have been a good idea? The coy duration on gas production after dewatering is a few years for "maybe" (see ann), a bit long to tie up invest funds. The time frame for drilling Stitch (2000m) seems to be a "reasonably risk" for investing, after Valentine 1 CB, free up $'s
DYOR
Cheers
Cam,
Yeah I spent some time looking into the Santos 3 lease farm-in and share purchase and I think that original JV was designed with santos' eye on the two ATP 7' permits. I wondered why they would be interested in bearing the costs to share the profits, I figure after crunching the numbers it was economic to just buy the two permits and relinquish their share in ATP626 back to ICN?
I dipped a toe this am and have the same idea with my Val' profits
Good to see the old girl steadily creeping up, will be interested to see 8/9c hold as support.
The previous run last year was on good shows (gas and fluoroescence) from the Bayou Choctaw VF 1 well (targeting 1.8mmbbls- 20 odd % share to ICN- same as HZN) which the operator unfortunately lost control of due to an underpowered rig. They (CLK) did however pay >5 million for a 60% share so they obviously see some value there?
As its alongside a piece of the US strategic reserve then I guess its pretty oily.
Hopefully this will jump firmly back through 10c once a firm date is announced for Stitch (comparing the above with a minimum 75% share of 20+ mmbbl recoverable target)
The previous run last year was on good shows (gas and fluoroescence) from the Bayou Choctaw VF 1 well (targeting 1.8mmbbls- 20 odd % share to ICN- same as HZN) which the operator unfortunately lost control of due to an underpowered rig. They (CLK) did however pay >5 million for a 60% share so they obviously see some value there?
As its alongside a piece of the US strategic reserve then I guess its pretty oily.
Hopefully this will jump firmly back through 10c once a firm date is announced for Stitch (comparing the above with a minimum 75% share of 20+ mmbbl recoverable target)
Attachments
Re: UPDATE ON ICON’S DRILLING PROGRAMME IN ATP 626P –SURAT BASIN
Icon’s drilling programme in ATP 626P is due to start with the drilling of the CBM wells with an
expected spud date towards the end of the week beginning 22nd October 2007. The Mitchell
drilling rig is expected to begin moving to the first location in the next two days. The first well
will be Natasha No.1 to be followed by Lydia No.1.
Stitch No.1 site preparation is almost completed and the water lines have been installed. The rig
we are proposing to use is stacked and ready to move and the mobilisation is to be shared
between three parties. One of the parties has not yet confirmed the contract but is expected to do
so within days. Until this decision is firm Icon must wait before the rig can be moved. Should the
rig contract not proceed then a second rig is available for contract and we would seek to use this
rig. An announcement will be made as soon as the decision is made on the rig for Stitch No.1.
While the wells are drilling, regular weekly reports will be released to the market through the
Australian Stock Exchange (ASX) and these will be posted on Icon’s website soon after the
announcements are accepted by the ASX. Special reports will be issued to announce significant
drilling results as they come to hand.
Icon’s working interest in ATP 626P is 100% and Icon will operate the drilling and testing
programme.
Icon’s drilling programme in ATP 626P is due to start with the drilling of the CBM wells with an
expected spud date towards the end of the week beginning 22nd October 2007. The Mitchell
drilling rig is expected to begin moving to the first location in the next two days. The first well
will be Natasha No.1 to be followed by Lydia No.1.
Stitch No.1 site preparation is almost completed and the water lines have been installed. The rig
we are proposing to use is stacked and ready to move and the mobilisation is to be shared
between three parties. One of the parties has not yet confirmed the contract but is expected to do
so within days. Until this decision is firm Icon must wait before the rig can be moved. Should the
rig contract not proceed then a second rig is available for contract and we would seek to use this
rig. An announcement will be made as soon as the decision is made on the rig for Stitch No.1.
While the wells are drilling, regular weekly reports will be released to the market through the
Australian Stock Exchange (ASX) and these will be posted on Icon’s website soon after the
announcements are accepted by the ASX. Special reports will be issued to announce significant
drilling results as they come to hand.
Icon’s working interest in ATP 626P is 100% and Icon will operate the drilling and testing
programme.
Wysiwyg
Everyone wants money
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On the map of ATP626P it shows me that Lydia 1 and Natasha 1 are being drilled beside dry holes. Snatch 1 is being drilled beside two shut-in wells (Ballymena 1).They might get lucky on the first two, who knows.
