Icon, Shantou SinoEnergy Extend Gas Sales Agreement Deadline to June 2015
Australia's Icon Energy Limited (Icon) disclosed Monday that Icon and Shantou SinoEnergy Co Ltd, of the Peoples’ Republic of China, have agreed to extend the completion date for conditions precedent in the Gas Sales Agreement (GSA) signed by both parties in March 2011.
The new date for completion of “Conditions Precedent” as detailed below is, on or before June 30, 2015.
The liquefied natural gas (LNG) Sales Agreement includes the following conditions precedent with amended dates:
(a) In favor of Shantou SinoEnergy (as the Buyer of LNG):
- Buyer obtaining any necessary import approvals on or before June 30, 2015 from Chinese Government Authorities to allow the construction and operation of the Receiving Facilities and the purchase and import by it of LNG under the LNG Sales Agreement
- Buyer delivering to Seller on or before June 30, 2015 the written certification of a Rating Agency specifying for Buyer a credit rating of AAA (where the Rating Agency is S&P) or Aaa (where the Rating Agency is Moody’s)
(b) In favor of Icon Energy (as the Seller):
- Seller delivering to Buyer by on or before June 30, 2015 a Reserves Certificate of at least 2.0 trillion cubic feet (Tcf) of Proven and Probable Reserves (2P) of Natural Gas (which the Parties agree is a sufficient quantity of Natural Gas to enable Seller to comply with its LNG supply obligations to Buyer under the LNG Sales Agreement)
- Seller obtaining by on or before June 30, 2015 all required authorizations (including for the development and operation of any feedstock fields and LNG facilities) on terms satisfactory to Seller in its sole discretion
On June 19, 2104 Icon Energy released the findings of an independent report by DeGolyer and MacNaughton showing an estimate of Gross Unconventional Prospective Raw Natural Gas Resources (as of June 15) in ATP 855 in Queensland, South Australia The report showed a best estimate (P50) of 28Tcf of which Icon Energy’s interest is 10Tcf (35.1 percent). The results are summarised as follows:
ATP 855 – Gross Unconventional Prospective Raw Natural Gas Resource
- Gross Unconventional Prospective Raw Natural Gas Resources (Tcf): Low Esimate (P90) - 21.48 Tcf; Best Estimate (P50) - 28.49 Tcf; High Estimate (P10) - 37.74 Tcf
On August 26, 2013 Icon Energy announced an estimated Contingent Resource (prepared byDeGolyer & MacNaughton for Beach Energy) attributed to the areas around the Halifax-1 well as follows:
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