Icon Reports ATP 855 in Queensland Holds 28 Tcf of Prospective Gas Resource

Icon Energy Limited reported Thursday a 28 trillion cubic feet (Tcf) Unconventional Prospective Gas Resource estimate in ATP 855 in Queensland, Australia.

Beach Energy Limited, in its capacity as Operator of the ATP 855 joint venture, which comprises Beach Energy, Icon Energy and Chevron Australia Exploration 1 Pty Ltd, recently engaged DeGolyer & MacNaughton, a leading United States based independent consulting firm focused on the petroleum industry, to provide a report on the Unconventional Prospective Resources in ATP 855. The June 15 report prepared by DeGolyer & MacNaughton has been disclosed by Beach Energy to Icon Energy for the purpose of release to the Australian Securities Exchange.

The findings of this independent report show a best estimate (P50) of 28 Tcf of Gross Unconventional Prospective Raw Natural Gas Resources (as of June 15) in ATP 855, of which Icon Energy’s interest is 10 Tcf (35.1 percent). The results are summarized as follows:

ATP 855 – Gross Unconventional Prospective Raw Natural Gas Resource

• Gross Unconventional Prospective Raw Natural Gas Resource (Tcf): 21.48 (Low Estimate - P90); 28.49 (Best Estimate - P50); 37.74 (High Estimate - P10)

Notes:

• Low, best and high estimates in this table are P90, P50 and P10 respectively
• Probability of geological success has not been applied to the volumes in this table
• Application of any geological and economic chance factor does not equate unconventional prospective resources to contingent resources or reserves
• Recovery efficiency is applied to unconventional prospective resources in this table
• The unconventional prospective resources presented above are based on the statistical aggregation method (probabilistic estimates for each formation)
• There is no certainty that any portion of the unconventional prospective resources estimated above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the unconventional prospective resource evaluated

The Unconventional Prospective Resources Estimates prepared by DeGolyer and MacNaughton were evaluated in accordance with the Petroleum Resources Management System (PRMS).

Icon Energy Managing Director Ray James said, today’s independent report is a very encouraging outcome for the joint venture. To have a 28 Tcf Recoverable Prospective Resource booking with Icon’s interest being 10 Tcf is a significant step towards our primary objective of proving up 2 Tcf of 2P reserves in ATP 855.

“This booking released today confirms the potential of the Nappamerri Trough shale and basin-centered gas province and as a joint venture partner we are working hard to “crack the code” of this exciting resource play”.