ICN - Icon Energy

[grace]

Grace, I will leave it to you to discect this for the minute. Getting late here.


MAIDEN CSG RESOURCE CERTIFICATION

OVERVIEW

1. Netherland, Sewell & Associates, Inc. (NSAI) certifies 260 PJ 2C Contingent resource in Lydia
2. All three Lydia pilot wells flowing
3. Seismic Program update
4. Tenders for new October drilling program

Well, it was a buy the rumour, sell the fact moment for Icon last week when the maiden resource of 260PJ of 2C was announced I'm afraid.

Still early days for this little gasser, but it doesn't look too bad at all.

It is only contingent reserves, so some big hoops still to jump, but we should get an idea about that very soon as the 3 Lydia pilots are on production test, and the forth about to go on. These are more important, and will progress the reserves up to 3P. If the 260PJ is proved up to 3P I would assign a value of $260 million. It is only on 13% of ATP626, so plenty of area to find more.

Saturation, permeability, depth, and width of coals all stated as good per ASX announcements if you search here and there. Just waiting on the pilots now.

This company is hoping to prove up 5400PJ eventually.

I don't have time to check shares on issue etc, but my commsec account is saying
MC = $187 million
Cash = $20 million (sorry not sure, but at least this)
Value for csg $167 million

(They have been doing quite a bit of fund raising through share issues of late and should have about $20 million cash.)

Well, if 260 of 2C is converted to 3P, I think there is certainly room to move up in the share price.

Comments welcome!

 

[Donga]

Great stuff - you and Kennas make a wonderful team and can see you really do look at the fundamentals

 

[Sean K]

This looks like quite a few PJ's!

Just GIIP of course....

Another ramp?


7th September 2009
The Manager
Company Announcements Office
Australian Securities Exchange Limited
20 Bridge Street
Sydney NSW 2000
Dear Sir

NETHERLAND, SEWELL & ASSOCIATES, INC. (NSAI) ESTIMATES SIGNIFCANT COAL SEAM GAS RESOURCES WITHIN ICON ENERGY’S ATP 626P

HIGHLIGHTS:
1. GIIP within ATP 626P estimated to be 6115 PJ.
2. ATP 626P’s current resource is 1150 Best Estimate (2C) and 1773 PJ High Estimate (3C).
3. Lydia farmin area report due.

 

[swm79]

why does this always happen to me?!

i was just tossing up between ICN, WCL and ECU... in the end it came down to ICN and WCL and i went with WCL... and now this!!!!

anyway, time will tell i guess

 

[Sean K]

why does this always happen to me?!

i was just tossing up between ICN, WCL and ECU... in the end it came down to ICN and WCL and i went with WCL... and now this!!!!

anyway, time will tell i guess

LOL I was saying the same thing a few months ago regarding ECU. Has trippled since then.

 

[Sean K]

Bit of a resource upgrade which looks nice.

UPGRADED NSAI CERTIFIED RESOURCE ESTIMATES FOR ICON ENERGY’S LYDIA FARMIN AREA

S&P/ASX 300 Index company, Icon Energy Limited (ICN) has received consent from Netherland, Sewell & Associates, Inc. (NSAI) on the 16th of September 2009 of upgraded certified estimates of the coal seam gas resource within the Stanwell Corporation farmin area in ATP 626P.

The farmin region, containing the Lydia Pilot Program, represents 13% of the key Icon Energy tenement located in Queensland’s Surat Basin.

The resource estimates have been provided by leading international certifier, Netherland, Sewell & Associates, Inc. (NSAI).

In the Lydia farmin area, the NSAI best estimate of the 2C Contingent Gas Resource is 357 billion cubic feet (BCF).

The 2C Gas Initially In Place (GIIP) best estimate is 773 BCF.

The upgraded results compare with earlier estimates of 2C Contingent Gas Resource at 260 BCF and 2C GIIP at 564 BCF.



I love this chart!

 

[Sean K]

I love this chart!

Question now is, where is support on the inevitable consolidation/correction?

Need to check market cap v peers, but has probably run ahead of itself you'd think.

Best guess major and minor support:

 

[swm79]

Question now is, where is support on the inevitable consolidation/correction?

Need to check market cap v peers, but has probably run ahead of itself you'd think.

Best guess major and minor support:

prepare for the punters now kenna

saw this in this afternoon's Australian:

CSG hopeful Icon runs hot

* Font Size: Decrease Increase
* Print Page: Print

Matt Chambers | October 01, 2009
Article from: The Australian

LIKE much of the market, shares in coal seam gas hopeful Icon Energy have been running hot in recent months, but the company is hoping it will be re-rated even higher after commerciality tests of its ground in Queensland's Surat Basin.
If tests Icon hopes will be fruitful in the next month or two reveal commercial flows of water or gas, the company’s 1150 petajoules of 2C (or best estimate) and 1775 of 3C (high estimate) resources could be upgraded to proven and probable (2P) or proven probable and possible (3P) reserves.

Using metrics for some recent deals (and caution is always advised here because there are a wide range of numbers that can be cherry picked and played with) it’s said this could give Icon a value of around $1.40 a share verses current prices of around 50c.

Icon is shunning the LNG export hype for now and hoping to cement a position in domestic gas while other players have their eyes on foreign markets.

As well as a deal with Queensland utility Stanwell Corp to amass reserves for a power station, Icon boss Ray James is musing on building a very small-scale LNG plant in Queensland to sell to the freight industry.

you might have to revise that graph

 

[grace]

First report on flows at Lydia at 30 000 reported today. Not all that flash in my books. They are hoping to build up to 250 000, their required commerical flow rate. That seems a long way away. Anyone been following flows starting at this level and where they ended up?

It is my thoughts, that there is a weak patch in the surat basin between condamine QLD and narrabri NSW. Hope this is not true, but these early signs are way below their blue chip peers in the industry.

Market does not appear to agree with me, so I could be completely wrong of course!

 

[Dukey]

Hi Grace - 30 000 does sound pretty ordinary hey. Hope for all concerned that it picks up.....


Oh for the good ole days of QGC... (from early on - post #35 in the QGC thread)....

QGC today came close to equaling its last high. Around 11 Feb 2005 QGC reached $0-74. From memory there was a special public share issue at that time. Today it closed $0-735. The chart has been consolidating in recent times and the price movement today is on the back of a market sensitive ASX announcement. In short QGC is almost ready to turn its gas exploration efforts into a commercial reality, ahead of contractual deadlines.

The following is from the QGC website and is part of the ASX announcement released today.

Monthly Status Report January 2006 17-Jan-2006

Overall Project status

QGC’s Berwyndale South Project is on target to supply CS Energy with coal seam gas several months ahead of the contractual deadline of 31 July 2006. The project is on budget and very encouraging gas flows have been recorded from new development wells in recent weeks.One of the new wells (# 18) produced more than 2 million cubic feet of gas per day (mmcfd) without the need for pumping.

To download entire Monthly Status Report (pdf) click here

Top of page

For further information go to:
http://www.qgc.com.au/news/20060117-5888.cfm

The chart for the year to date is attached.

I think a few companies are starting to realise why BG wanted QGC so bad, and PES too. Don't think any other mob has come close to these kind of flows.... sadly.
-D

 

[grace]

Hi Grace - 30 000 does sound pretty ordinary hey. Hope for all concerned that it picks up.....


Oh for the good ole days of QGC... (from early on - post #35 in the QGC thread)....



I think a few companies are starting to realise why BG wanted QGC so bad, and PES too. Don't think any other mob has come close to these kind of flows.... sadly.
-D

Yes, remembering the good old days. I have a picture on my desk of the Berwyndale South #18 flare that initially free-flowed gas at 2.3 million cubic feet per day and stabilised at around 2 million cubic feet per day. Blue chip alright! BOW looking quite smart though today (trying to be a bit quiet on that front before I load up there.)

 

[Miner]

Folks

I do hold some ICN.
Reading your postings and seeing the performance of ICN it looks like doom sayer's stock.

Is there any positive sign to get the fire extinguished ?

 

[grace]

Methane content of 98% is very good, pity about the flow rates though...doesn't sound very encouraging at this point. No upgrade yet from 30 000 scfd.

 

[grace]

Methane content of 98% is very good, pity about the flow rates though...doesn't sound very encouraging at this point. No upgrade yet from 30 000 scfd.

Well folks, this has been on pump since August 2009, which means at about 6months you'll get a good indication of whether it is commercial or not.

I think this company is not informing the market very well at all. One only has to look at esg to see what good information is.

No permeability results ever given - come on, we know how to read them. They say they are good, yet don't give a measure.

Not touching this until we have some decent information. Shareholders are supposed to be kept well informed, and the fact they haven't really reported the strength or otherwise of this pilot from time to time, shows to me that perhaps the results are very poor.

Hopefully, I will be proven wrong.

 

[grace]

Well folks, this has been on pump since August 2009, which means at about 6months you'll get a good indication of whether it is commercial or not.

I think this company is not informing the market very well at all. One only has to look at esg to see what good information is.

Perhaps they read my post last night?

“The Lydia Pilot has been on production for four (4) months now and water flow rates average about 300 barrels of water per day,” Mr James said.
“This rate has been constant now for a couple of months and indicates the permeability will sustain production although on the low side of initial expectations”.
“The wells will eventually produce gas for a long time but at low rates. We will continue pumping the wells until we see the gas breakout that is required for sustained production of gas.” he said.
Samples from the new wells are being desorbed in the laboratory, a process which will take some months to reach a result.
“NSAI (reserve certifiers Netherland, Sewell & Associates, Inc.) estimate commercial gas or water production to be in the range of 200,000-250,000 cuft/day or 300-500 BWPD,” he said.
The coals are 100% saturated and the gas composition has been measured in the laboratory at 98% methane with a calorific value of 1 Gigajoule per 1,000 cubic feet.

Okay, so are they say it is either gas or water at that flow rate - and not necessarily gas? mmmm Anyone care to comment.

 

[Dukey]

I agree Grace - doesn't look all that flash to me, and I recall thinking before that ICN seem to talk up their prospects without a lot of detail to back it up. They might hit paydirt somewhere... but ...?? There are other CSGers around with much better prospects.... ESG - esp since their reserves upgrade and BOW to name 2. ... all just IMO.

 

[Trader Paul]

Hi folks,

ICN ..... chart seems to be primed for some news ... v-bottom will be confirmed this
week, after a small hammer and an increase in volume last Friday, just ahead of a
major and positive time cycle coming into play, from Tuesday next .....

have a great week all

paul



=====

 

[val1239]

ASX ANNOUNCEMENT

ICON ENERGY LIMITED SIGNS CHINA GAS DEAL FOR UP TO $A32 BILLION
Icon Energy Limited (ICN) has signed a major international agreement with Shenzhen Sino Industrial Development Company Limited (SSIDC), a subsidiary of China’s SinoGas Group.
Under a MOU signed in China today, Icon Energy and SSIDC have agreed the key terms of an exclusive gas supply deal for the delivery of 40 million tonnes of liquefied natural gas (LNG) over a 20 year period with detailed terms of the Gas Sale Agreement to be negotiated and executed by 31 August 2010.
The export value of the agreement ranges from $A23 billion to $A32 billion, depending on the price of Singapore Tapis Crude.
The deal positions Icon Energy as the exclusive supplier of approximately 2.2 trillion cubic feet (TCF) over the 20 year life of the agreement.
Icon Energy plans to meet the contractual requirements via its current tenements in South Australia and Queensland, arrangements with existing joint venture partners, new farmin agreements and the securing of additional tenements.
2
Icon Managing Director, Ray James will be available for comment on the agreement at a media conference to be held in Melbourne at 1pm on Friday 9 April 2010 at Level 37, 530 Collins Street, Melbourne.

 

[tech/a]

Managed to get out at 52c waiting for supply to dry up then back in again.----------------------------------

 

[val1239]

wow great exit at 52c.. good catch..i got out at 48c

yeah im looking to jump in again after supply deteriorates.. what price you looking at?