re: stitch - good bidding coming in/deal sinking i
Sandune, I'm still trying to get my head around the STITCH announcement.
Firstly, ICN have entered a 50-50% joint venture ("working interest") with Santos to drill STITCH in the Surat Basin (ATP 626P). This is pending renewal permit with Dept of Natural Resources and Mines in Queensland. Drilling is expected "within a couple of months". This is great news and includes details of subscription agreement which sounds pretty positive for ICN. Once again as with Bayou, they have involved themselves with experts which has to give people some confidence in the operations but is also a plus for ICN to be considered as partners by these major players.
But there's also mention of a joint venture with Santos over ATP 765P & ATP 766P (Cooper-Eromanga Basin). Santos 63% & ICN 27.7% interest. These are apparently at the "application stage".
Details of today's announcement is as follows:
AGREEMENTS WITH SANTOS LIMITED AND ITS SUBSIDIARY SANTOS QNT
Icon Energy is pleased to announce that it has negotiated and signed the following agreements with Santos Limited and its subsidiary Santos QNT Pty Ltd (together "Santos").
A Subscription Agreement wherein Santos has agreed to subscribe for 10,000,000 fully paid ordinary shares in Icon Energy Limited at a price of 6.76 cents per share and these shares to rank pari passu with existing shares. The placement of the 10,000,000 shares is conditional on the Farmin Agreement over ATP 626P and the renewal of that permit, as well as on approval by Icon's shareholders under the ASX Rules. The consideration for the Santos share investment is $676,000.00. In addition Santos has agreed to take up 20,000,000 options to subscribe for fully paid ordinary shares in Icon Energy. The price is to be calculated at a 20% discount to the average market price for the shares for the 5 days prior to the time of exercise. The price for the issue of the options is $100,000.00. The issue of the options is not conditional on the Farmin Agreement nor on the renewal of the permit. The options cannot be exercised before 31 December 2006 nor after 31 December 2008.
A Farmin Agreement over ATP 626P in the Surat Basin wherein Santos has been appointed operator and has committed to drill (and suspend/plug and abandon as necessary) the Stitch No.1 well. The drilling of this well is ultimately subject to rig availability and final selection of the drilling location but could occur within the next few months. Santos will earn a working interest of 50% in the permit and Icon's working interest will reduce from 100% to 50% in the permit. Several drilling opportunities have been interpreted in the permit and an active ongoing seismic and drilling programme is anticipated following the drilling of Stitch No.1.The farmin is subject to the renewal of the permit and this renewal is being processed by the Department of Natural Resources and Mines in Queensland. Upon completion of the drilling of Stitch No.1 the interests of the parties will be:-
The Stitch No.1 location is currently being reviewed by Santos and Icon to establish the final drilling location for the well. The well is located on the Moonie Fault and on trend to the Moonie Oilfield with the same reservoir objective. It is located about 40 kms south of the Moonie Oilfield. Access and proximity to the Moonie pipeline infrastructure makes this prospect an attractive target. Further announcements will be made when the prospect is ready for drilling and a rig has been assigned to the work by Santos which will operate the drilling of the well.
Heads of Agreement over ATP 765P and 766P in the Cooper-Eromanga Basin in Southwestern Queensland. Under this agreement Santos will be appointed operator and has agreed to record 150 kms of new 2D and 160 kms of 3D seismic data and drill one well in each area. Following this programme the working interest of the parties will be:- Santos 63.00% Icon Energy Limited 27.75% Deka Resources Pty Ltd 4.625% Well Traced Pty Ltd 4.625%
Under these agreements Santos will carry Icon and its joint venture partners through the seismic and drilling programme.ATP 765P and 766P are at the application stage and Native Title agreements must be negotiated before seismic data can be recorded and a well located. Santos will conduct this work under a Farmin Agreement which is in preparation.
The Board of Icon is pleased with Santos' vote of confidence in Icon's quality acreage position in the Surat and Cooper-Eromanga Basins.
Yours faithfully Icon Energy Limited
J B Cummins Company Secretary
AGREEMENTS WITH SANTOS LIMITED AND ITS SUBSIDIARY SANTOS QNT
Icon Energy is pleased to announce that it has negotiated and signed the following agreements with Santos Limited and its subsidiary Santos QNT Pty Ltd (together "Santos").
A Subscription Agreement wherein Santos has agreed to subscribe for 10,000,000 fully paid ordinary shares in Icon Energy Limited at a price of 6.76 cents per share and these shares to rank pari passu with existing shares. The placement of the 10,000,000 shares is conditional on the Farmin Agreement over ATP 626P and the renewal of that permit, as well as on approval by Icon's shareholders under the ASX Rules. The consideration for the Santos share investment is $676,000.00. In addition Santos has agreed to take up 20,000,000 options to subscribe for fully paid ordinary shares in Icon Energy. The price is to be calculated at a 20% discount to the average market price for the shares for the 5 days prior to the time of exercise. The price for the issue of the options is $100,000.00. The issue of the options is not conditional on the Farmin Agreement nor on the renewal of the permit. The options cannot be exercised before 31 December 2006 nor after 31 December 2008.
A Farmin Agreement over ATP 626P in the Surat Basin wherein Santos has been appointed operator and has committed to drill (and suspend/plug and abandon as necessary) the Stitch No.1 well. The drilling of this well is ultimately subject to rig availability and final selection of the drilling location but could occur within the next few months. Santos will earn a working interest of 50% in the permit and Icon's working interest will reduce from 100% to 50% in the permit. Several drilling opportunities have been interpreted in the permit and an active ongoing seismic and drilling programme is anticipated following the drilling of Stitch No.1.The farmin is subject to the renewal of the permit and this renewal is being processed by the Department of Natural Resources and Mines in Queensland. Upon completion of the drilling of Stitch No.1 the interests of the parties will be:-
The Stitch No.1 location is currently being reviewed by Santos and Icon to establish the final drilling location for the well. The well is located on the Moonie Fault and on trend to the Moonie Oilfield with the same reservoir objective. It is located about 40 kms south of the Moonie Oilfield. Access and proximity to the Moonie pipeline infrastructure makes this prospect an attractive target. Further announcements will be made when the prospect is ready for drilling and a rig has been assigned to the work by Santos which will operate the drilling of the well.
Heads of Agreement over ATP 765P and 766P in the Cooper-Eromanga Basin in Southwestern Queensland. Under this agreement Santos will be appointed operator and has agreed to record 150 kms of new 2D and 160 kms of 3D seismic data and drill one well in each area. Following this programme the working interest of the parties will be:- Santos 63.00% Icon Energy Limited 27.75% Deka Resources Pty Ltd 4.625% Well Traced Pty Ltd 4.625%
Under these agreements Santos will carry Icon and its joint venture partners through the seismic and drilling programme.ATP 765P and 766P are at the application stage and Native Title agreements must be negotiated before seismic data can be recorded and a well located. Santos will conduct this work under a Farmin Agreement which is in preparation.
The Board of Icon is pleased with Santos' vote of confidence in Icon's quality acreage position in the Surat and Cooper-Eromanga Basins.
Yours faithfully Icon Energy Limited
J B Cummins Company Secretary
ICN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)