Icon Energy, Shantou Sino Energy Extend Deadline for Gas Sales Agreement
Icon Energy Limited reported Friday that the company and Shantou Sino Energy Co. Ltd., of the Peoples’ Republic of China, have agreed to extend the completion date for conditions precedent in the Gas Sales Agreement in place for 40 million tons of liquefied natural gas (LNG), (2 million tons per annum for 20 years).
The new date for completion of “Conditions Precedent” as detailed below is, on or before June 30.
Conditions Precedent
The LNG Sales Agreement, signed by both parties in March 2011, includes the following conditions precedent with amended date of June 30, 2018:
(a) In favour of Shantou Sino Energy Co Ltd (as the Buyer of LNG):
- Buyer obtaining any necessary import approvals on or before June 30, 2018 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, 2018 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 favour of Icon (as the Seller):
- Seller delivering to Buyer by on or before June 30, 2018 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, 2018 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
ATP 855 – Current Status
As of June 25, there is no change to the previously announced gas resource estimates in ATP 855 in the Cooper Basin.
DeGolyer and MacNaughton, a leading United States based independent consulting firm focussed on the petroleum industry, provided a report on the Gross Unconventional Prospective Resources in ATP 855, which Icon announced to the market June 19, 2014, and which is summarized as follows:
- Gross Unconventional Prospective Raw Natural Gas Resource (Tcf)
- Low Estimate (P90): 21.48
- Best Estimate (P50): 28.49
- High Estimate (P10): 37.74
DeGolyer and MacNaughton also provided an updated report on the Gross Contingent Resources in ATP 855, which Icon announced to the market on March 27, and which is summarized as follows:
- Gross Contingent Resources (billion cubic feet)
- IC: 343
- 2C: 1,572
- 3C: 5,841
The Gross Unconventional Prospective Resource and Gross Contingent Resource Estimates prepared by DeGolyer and MacNaughton were evaluated in accordance with the Petroleum Resources Management System (March 2007).
Currently, the Operator is in the process of evaluating all the results of the Stage 1 work program.
Icon’s working interest in the ATP 855 tenement is 35.1 percent and Beach Energy’s interest is 64.9 percent.
ATP 594 – Exploration Update
ATP 594 was renewed by the Department of Natural Resources and Mines, with a renewal date of April 17. The current approved term of ATP 594 is for 4 years, with an opportunity to apply for a renewal at the end of the 4 year time period. There is a further opportunity to renew after 8 years, which if granted, would take the maximum term allowable for the ATP to 12 years.
Preparations are now being made to acquire a 3D seismic survey in the permit with an expected start date in the second half of 2015, which will be followed by a well in 2016.
Icon is Operator and has a 100 percent working interest in the tenement.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call