Icon and Santos Sign Farm-in Deal

Icon Energy and Santos Limited have negotiated and signed a farm-in deal in which Santos agrees to pay $676,000 (US$ 486,585) for a 50-percent stake in Icon's planned Stitch No. 1 well in the Surat Basin, Queensland.

The subscription agreement calls for Santos to purchase 10 million fully paid ordinary shares in Icon at a price of 6.76 cents per share. The placement of the shares is conditional on the companies' farmin agreement over ATP 626P and the renewal of that permit, along with approval by Icon's shareholders under Australian Stock Exchange rules.

The consideration for the Santos share investment is AUD 676,000. In addition, Santos has agreed to take up 20,000,000 options to subscribe for fully paid ordinary shares in Icon. The price will be calculated at a 20-percent discount to the shares' average market for the five days prior to the time of exercise.

The price for the issue of the options is AUD 100,000 (US$71,980). The issue of the options is conditional neither on the farmin agreement nor on the renewal of the permit. The options cannot be exercised before December 31, 2006, or after December 31, 2008.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Account Rep, Bus Dev, Sr
Expertise: Business Development|Sales
Location: Houston, TX
Business Development Manager
Expertise: Business Development|Construction Manager|Sales
Location: Tempe, AZ
SXL- Manager, Business Development
Expertise: Business Development
Location: Newtown Square, PA
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours