ICN - Icon Energy

[redwynne]

My mum is interested in this stock but before I go and encourage her to buy it I thought I would ask... is it worth buying? I think she is only interested in a small purchase and just forgetting about it.

There isnt much activity in this thread so Im wondering if its a worthwhile share to invest in.

Any thoughts? Thanks

 

[jdh]

ICN would have been a great buy last week..

The lowest I saw it at was 29c, and I'm kicking myself for not buying before it went up 30% yesterday. Going off the chart I would guess late next week as another chance to buy in, but take that with a grain of salt.

 

[zoomy jeff]

can someone tell me how many Cubic feet make up one Petrajoule i.e. in the case of Icon how much is 10 petrajoules per year likely to be worth in cash flow?

 

[cordelia]

Actually I would like to know what happened to the SP this afternoon after the announcement. BNB took a bashing but why did ICN

 

[mas888moe]

The reason why is explained in the following news article:

http://www.goldcoast.com.au/article/2008/06/13/12397_gold-coast-business.html

 

[redwynne]

ICN would have been a great buy last week..

The lowest I saw it at was 29c, and I'm kicking myself for not buying before it went up 30% yesterday. Going off the chart I would guess late next week as another chance to buy in, but take that with a grain of salt.

Im curious, how can you tell that late next week could be a good chance to buy from the chart? Sorry, Im new to predicting stuff from charts. I can read the charts as such but not sure how one can tell what the future holds using a chart.

The reason why is explained in the following news article:

http://www.goldcoast.com.au/article/2008/06/13/12397_gold-coast-business.html

So is this good news? Im still trying to decide if investing in these shares is a good idea.

Cheers for your feedback.
Noob here

 

[cordelia]

Sorry, Im new to predicting stuff from charts. I can read the charts as such but not sure how one can tell what the future holds using a chart.
So is this good news? Im still trying to decide if investing in these shares is a good idea.
Cheers for your feedback.
Noob here

No one can tell for sure what the future holds by looking at charts or anything else for that matter. A chart can give an indication on what might happen...might being the operative word....Charts are a reflection of past human behaviour and work on the premise that because humans generally behave in certain ways in certain situations that they might do so again....but they do not guarantee it...

They can certainly help with your entry and exit points but nothing is absolute...More important than looking at charts is knowledge of risk management and position sizing to protect your capital. There is some very good literature on trading stratergies etc. and specific threads in the forum are devoted to this sort of thing. take a look in the resources forum...

Getting back to the news article ...from what I can gather it would have been good news but for the fact that it was associated with BNB....guilty by association or some such thing.....

I was going to top up before all this happened but now I will wait for the dust to settle to see if its viable....

 

[doogie_goes_off]

Outstanding increase in coal seam gas resources released today - providing the company with a new focus for production.

 

[doogie_goes_off]

Very quiet reaction this morning, I would have thought this was going to continue to buck the trend, looks like I'm in for some buying.

 

[doogie_goes_off]

Well it's day 3 and still no one seems to have made the connection that there is the equivalent of 900 million barrels of oil in the ground as coal seam gas in the Surat Basin. I suppose I'll just have to take the tens of billions for myself then.

 

[zoomy jeff]

I believe the next major jump in price will be when and if they prove reasonable gas flow from the de-watering. I have put half of my ICN profit into NWE hoping for a profit from the Puffin well currently being drilled. Once the well has been completed I plan to buy more, thus I am hoping ICN doesn't rise too soon.

 

[Sean K]

I'm trying to get my head around these petajoules and gigijoules etc and wondering how Ican rates in the joule department. How's 5400 petajoules sound?

COAL SEAM GAS EXPLORATION
Authority to Prospect (ATP) 626P Farmin
On 24 December 2008, Icon Energy Ltd. (Icon) signed a Farmin Agreement
with the Stanwell Corporation Limited (Stanwell) for an interest in part of
ATP626P consisting of four blocks. ATP 626P has an estimated prospective
gas resource of up to 5400 petajoules of gas initially in place (GIIP).

 

[grace]

I'm trying to get my head around these petajoules and gigijoules etc and wondering how Ican rates in the joule department. How's 5400 petajoules sound?

COAL SEAM GAS EXPLORATION
Authority to Prospect (ATP) 626P Farmin
On 24 December 2008, Icon Energy Ltd. (Icon) signed a Farmin Agreement
with the Stanwell Corporation Limited (Stanwell) for an interest in part of
ATP626P consisting of four blocks. ATP 626P has an estimated prospective
gas resource of up to 5400 petajoules of gas initially in place (GIIP).

Hi Kennas.....5400PJ is fantastic if they can get it out of the ground at commercial flow rates. QGC had 7000PJ from memory at which point BG took them out for $5.5bill. Pure Energy taken out at $1bill with PJ proved up of a few thousand on 5% of their acreage (gosh I've forgotten already sorry). It is nice to prove up some 2P (not just 3P) though.... I think in one of Santos's annoucements a good $/PJ comparison.

A petajoule is 1million gigajoule (you probably already know that).

 

[Sean K]

Hi Kennas.....5400PJ is fantastic if they can get it out of the ground at commercial flow rates. QGC had 7000PJ from memory at which point BG took them out for $5.5bill. Pure Energy taken out at $1bill with PJ proved up of a few thousand on 5% of their acreage (gosh I've forgotten already sorry). It is nice to prove up some 2P (not just 3P) though.... I think in one of Santos's annoucements a good $/PJ comparison.

A petajoule is 1million gigajoule (you probably already know that).

So, it seems if their guestimate of joules is around about they should be rated a wee bit higher perhaps.

Ann out regarding drilling update and they are ramping the 5.4/5400 still. I suppose ASIC must be happy with that so it's reasonable to assume they may find it?



UPDATE ON DRILLING STATUS LYDIA PILOT LP-4 AND LP3

Lydia Pilot LP4 has been completed with the running of production tubing and sucker rods together with the bottom hole pump assembly, sensor unit telemetry bundles and tubing string in preparation for dewatering and gas build up testing. The completed well is showing a well head pressure of 40 pounds per square inch, suggesting that the coals are saturated with gas. The rig was mobilized to LP-3 on Saturday April 25th and drilling commenced on Sunday April 26th. Drilling has continued to a depth of 80 metres.

When the three wells have been completed and the installation of well instrumentation and transducers in Lydia No1 has been completed, water samples will be obtained to test the quality of the water and commence the permeability draw down test on the three wells. The gas cut water tests from Natasha No. 1 measured water of a potable quality with impurities for 600 parts per million. This has important implications for water treatment and the costs of production.

The dewatering phase will then commence. This phase consists of the slow reduction in well head pressure on one well only to gauge the effects on well pressure in the other wells. The water drawdown process must be managed carefully to prevent the coals from caving or sluffing in the hole.

As previously advised, the reserves in the permit have not been determined at this point. However, establishing the existence of gas saturation in the coals of LP4 means we are on target for completing those activities necessary to move some of the 5.4 TCF (5400PJ) Gas Initially In Place (GIIP) to 1P, 2P and 3P reserves status.

 

[grace]

I just wanted to add a bit more to this one. I remember researching it some 18months ago and decided there were much better csg stocks around. They have been all taken over, except for esg, aoe, and I have small investments in bul (high risk), and I think that is it.

Anyway, I just wanted to remind myself about why I didn't buy some at the time, perhaps others may benefit, or not....

Stitch 1 has intersected Walloon coal at below 1000metres, and there were several 2 - 4 metre coals intercepted. 78 units of methane. What worries me about this is the depth. The good Walloon's can be found at 200 - 800metres up around the Chinchilla/Condamine area. The coals in ATP626P seem very deep, and the deeper, the harder to extract. The coals seem to head shallower around the Moree south area (where esg is drilling, and seem better further south around the Narrabri area).
Now, the land in ATP626P is an area close to my heart in QLD. However, I think there is more chance of finding conventional gas/oil here, like at Moonie. Just over the border in NSW, some conventional gas was found some time back (many years ago).
Looking at Lydia 1, this has intersected 15 metres of coal, but at what depth??? This is very important.
Natasha 1 intersected 11metres of coal, with 89% methane (okay) and 50mtrs carbonaceous material (what does that mean?).

Up in the Walloon fields around QGC, PES etc country, over the decades, geologists would drill up around those parts for other minerals, and would find all of this gas, and have trouble stopping it coming out of the ground. Once an old refrigerator was jammed down with some readymix to stop one of those flows many years ago (incidentally, that geologist became the founder of QGC). These same flows are now reaping rewards. I had also heard that sometimes farmers would drill for water and up would come the gas....a real problem at the time.

Now knowing some history about ATP626P, I have never heard any such stories in these parts. Doesn't mean there may not be commercial flows, I just think it is not going to be easy going to get that 5400PJ out. I watch with interest and hope though as with the commercial flows comes employment and prosperity for surrounding towns. Technology is improving with drilling too.

Comments invited and appreciated.

 

[Sean K]

I don't know crap about O&G and CSM but I know S&R and this is behaving well at the moment. Nice last couple of days too, although the whole market is running well despite the avalanche of bad international news. Expect a pause at 30c, but a break through will be bullish.

 

[Sean K]

Testing 30, but would expect a pause. Maybe moreso at the top of the up trend channel resistance around 33. Should expect that while it's conforming to this basic S&R and the market is relatively stable.

 

[Sean K]

Approaching that top trend line. Had a great run. Harry says, why didn't grandma commit more to this one earlier. Forever the consevative.

 

[Sean K]

Testing 30, but would expect a pause. Maybe moreso at the top of the up trend channel resistance around 33. Should expect that while it's conforming to this basic S&R and the market is relatively stable.

No pause, no resistance, just ran through to almost alltime highs. So much for S&R, but I'm not too unhappy. Bad thing out of this as far as TA goes is that we're leaving support way behind. Need some consolidation, basing, for a floor to push off again. Don't like it when things move too fast.

 

[Sean K]

Anyone know what all this means?

I'm still learning this CSM stuff, and have basically jumped on the bandwagon, following the charts.

12th MAY 2009 CORRECTED UPDATE ON DRILLING STATUS LYDIA PILOT LP-2

Lydia Pilot LP2, has reached a depth of 638.15 metres and piping has been set in preparation for the coring of the Walloon Coals. As previously advised, selected portions of the main coal sections will be sent to the testing laboratory in Brisbane to determine the gas content. The coring operation provides useful information on the Methane content of the coal. While we have strong indications of gas saturation from the drill cuttings and gas readings from the drilling process, reserve certifiers normally see standard cores as the most reliable source of gas content estimates. Core analysis also provides useful laboratory results on isotherm testing, proximate analysis and coal thickness. Core analysis results will be received progressively over the next two months with the final report due by the end of July.

Once the coring operations have been completed the hole will be enlarged and under-reamed to 22 inches over the main coal intervals. The production casing will then be installed and the rig released. A workover rig will be mobilized immediately LP-2 is cased and the production tubing and pumps installed for testing. The rig will then move to LP-3.