Project Profile
Value: Undisclosed
Location: ATP 626P in the Surat Basin in Queensland
Gas in place: 2.00 to 7.00 trillion cubic feet (TCF)
The Lydia Block is located in permit ATP 626P in the Surat Basin in Queensland. A preliminary estimate of the gas in place is now estimated to be in the range of 2.00 to 7.00 trillion cubic feet (TCF).
The key goal of the 2009 - 2010 twelve well program was to fulfil Icon’s obligations under Stage One of the farm in with the Queensland Government owned Stanwell Corporation Limited (Stanwell), and to evaluate gas potential in ATP 626P. Stanwell has committed to the Second Stage Work Program and the well locations for three new exploration wells in the Lydia Block have been identified and agreed with Stanwell. The drilling of these three new exploration wells will represent Stage 2 of the Company’s joint venture with Stanwell.
Under Stage 2, Stanwell has agreed to invest up to US$30 million to develop gas reserves from ATP626P.
The objectives of these four proposed wells are to:
- Identify net coal thickness.
- Determine gas content and saturations in the coal sections.
- Obtain estimates of permeability within the Walloon Coal Measures.
- Analyse the data obtained and select a second pilot area for future development wells in the Lydia Block.
These three wells will be drilled with a new coring system which will allow the Walloon Coal Measures to be cored with an 8½ inch diameter hole. The benefit of a hole of this size is that any, or potentially all, of these wells can easily be converted into production wells. Icon Energy has executed all compensation agreements with landholders and work on access roads and sites has commenced.
Drilling contracts have also been signed to drill the 3 Stanwell wells and an option for two additional wells. Upon completion of the data obtained from the drilling of these three exploration wells, a second pilot area will be identified for development. As part of the Stage 2 Lydia Block development with Stanwell, the company will then convert one of the exploration wells into a pilot production well as well as drilling and completing three additional pilot wells.
Operators:
Icon Energy: Operator with 50% interest
Stanwell Corporation Limited: 50% interest
Contractors:
Atlas Drilling: Supplied drilling rig
Ensign: Drilling rig contract