pre nr, page-9

While we wait with baited breathe for gassed to give us his views, just a few comments.

First, I am surprised by the price response. Icon's entire future depends on these flow rates and its moves 10%??? Personally I see it as an excellent start. I was watching the trades go through and there was a large seller offloading large blocks (50000s, 100000s) at 23-23.5 cents. I am guessing it was Macquarie or a large client of their's who was waiting for the liquidity to get out. Anyway, wish it was 2006 again...the market knew how to respond to a good announcement back then :-)

Second, as a few have been saying (gassed, in particular), I think that Icon is now the best leveraged exposure to the Cooper gas story you can get. I understand that some think shale is uneconomical in Australia. Others might say the flow rates from Halifax are only initial and will fall off. Good for them. But if you are not risk adverse and want exposure shale/tight gas in the Cooper - a resource that has already transformed the US - then Halifax had produced the best results thus far (IMHO). If - and I do say if - shale is developed at a commercial scale in Australia (100s of wells), you'd think the areas around Halifax would be a logical place to start/prioritise (esp. with infrastructure and proximity to East Coast). If you want to take a punt on the Cooper doing what we've seen in the US, Icon has the best exposure (i.e. until other wells are drilled). I am actually going to reduce my weight in my other unconventional gas/oil stocks to increase my exposure to Icon after today's announcement.

After ten long years in Icon - and many unsuccessful attempts at being involved in the 'next big' thing - RJ may have finally pulled it off.

Having said that, I should point out that I am willing to take big risks when it comes to exposing myself to transformational technologies. There are no guarantees that flow rates on Halifax will increase, or that the deep wells will be economic in OZ. But today was a significant de-risking for Icon.