re: on verge of louisianna drilling
A bit of history...The delays in Louisianna have been for numerous and varied reasons. Some of them were due to the following:
***In 2001 Icon commenced the drilling programme in the Victory Financial Lease with the drilling of VFL # 1. This well was suspended and prepared for re-entry following mechanical problems and flooding in the area from Cyclone Allison. VFL # 1 reached the top of the objective section with excellent shows but could not be completed or tested.
***Following the events in the USA on September 11 2001, the capital markets in the United States and Australia have been in disarray. In July 2002, new Securities Exchange Commission (SEC) regulations in the USA became law following the collapse of Enron, World.com and Arthur Anderson. These regulations have prevented start up companies from raising new capital in the USA markets and Icon had to abandon its plans to raise finance through a United States organisation
***28 June, 2004
USA OPERATIONS BAYOU CHOCTAW
Icon Energy is pleased to announce that a Purchase and Sale Agreement has been signed with CLK Energy Inc (CLK) and Horizon Oil's subsidiary, Bligh PNG, to developed the Bayou Choctaw Oil and Gas Field in Louisiana USA. Under this agreement CLK has committed to a comprehensive work over programme, a new well drilling development programme and a cash and production payment to Icon with a total value of $A11.0 million. Icon has received a cash Payment of $A920,000 and further production payments of $A2.2 million will be paid to Icon and Horizon under an agreed formula.
Icon's interests in the leases will be as follows:-
Victory Financial North Lease 38.5% Victory Financial South Lease 19.0% Wilberts Leases 14.0%
***31.5.2005
Unexpected problems with the workover wells, delays in completing the reprocessing of the seismic data and CLK Energy Inc's (CLK) delay in completing their financial arrangements have had the effect of a reduced cash flow. Gross oil production has averaged around 150 BOPD and this is expected to increase as new wells come on under the fully funded drilling programme.
***Jan 2006
The first deep well to be drilled by CLK Energy LLC in Bayou Choctaw has been permitted with the Louisiana Department of Natural Resources. The well was scheduled to be drilled to 2,775 metres (9,100 feet) in December 2005 using a Moncla drilling rig. The spud date has been delayed by the previous contract well and the rig which should have completed this well in two weeks was on location for over two months. This well has now been completed and this drilling operation is rigging down and moving to the Moncla workshop for a brief maintenance service. Following this service the rig will move to the Australian Mineral Interest No.1 well in the Victory Financial Lease at Bayou Choctaw. The estimated spud date is now the second week of February 2006 and the well will take about three weeks to drill to total depth.
Icon is carried through this first well and retains a working and revenue interest of 19.00% in the well.
After the drilling of the well, CLK intend to move to a second and then third location in the Wilberts Lease at Bayou Choctaw.
***All the delays and waiting is now over. Drilling commences within a week. Huricane season is over; hopefully there is nothing more in the way of hitting pay dirt. Cheers Pol.***
ICN Price at posting:
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