Gas Reserves Up to 1.25 Tcf Confirmed by Icon Energy in Australia

Independent expert evaluation of ATP 626's prospective reserve calculations indicate gas reserves in the range of 0.9 to 1.25 trillion cubic feet of gas ("TCF") which is the oil equivalent of 160-225 million barrels of oil.

Icon Energy Limited advises that preliminary discussions have been held with several interested parties, with both financial and technical capabilities, in relation to a Farmin into ATP 626. To date no final negotiations have been concluded as management continues to evaluate the new data becoming available and continues discussions with interested parties.

Having completed three gas-exploration wells in ATP 626P in the Surat Basin in Queensland, Icon energy has moved to the testing of these wells. There are three steps planed to evaluate the gas production potential of the identified coals.

Step 1 required drilling and conducting an initial flow test to confirm the water volume and quality of the water from the coal seams.

Step 2 requires that the coals intersected be dewatered and gas quantities then increase over time, as the coals are dewatered.

Step 3 When the gas flow is established as being commercial, it is then necessary to move to a development programme.

Based on the prospective reserve estimate, Icon Energy has made significant advances toward the completion of Step 2 of our commercial evaluation program.

Specialist equipment has arrived from the USA and we anticipate commencing the dewatering program in early April 2008.

The three wells are located where the sub-surface structure was expected to induce favourable reservoir characteristics in the structurally folded coal seams. Step 1 of the program supports this expectation. This structure is known as the Crowder Nose and is similar geologically to the Undulla Nose to the north of Moonie, which has proven to have some of the better coal permeabilities that are now proven successful methane producers.