Hi drwyas. The issue of certification of Icon's reserves is...

Hi drwyas. The issue of certification of Icon's reserves is fundamental as you rightly point out and the difference between Icon's unproven resource and Pure's proven reserves is the reason why today Pure SH's are sitting very pretty and Icon's are not.

A response as to how the proposed New Board will deal with raising funding to get some reserves certified is set out in the Icon Energy Action Group website under FAQ's which is set out below. I can confirm that the Action Group have been in discussion with potential farmin partners who are eager to participate once the existing Board of Directors is removed.

"22. How will the new Board raise the funds to enable Icon to certify the reserves on ATP626P?

The New Board will first need to deal with the ramifications of the Stanwell Deal which will require firm negotiation by a competent team. But subject to that proviso, the New Board will probably raise the necessary finance in a similar fashion as Bow have recently (for details of the Bow capital raising click here) by way of private placement but particularly through a rights issue with existing shareholders. The New Board have already discussed Icon’s likely capital needs with one of the financiers of Queensland Gas. This company has already been referred to the current Icon Board and offered to underwrite a $10 million issue to Shareholders. The current Board rejected their offer and chose instead to proceed with the flawed Stanwell Deal. The underwriting offer is still available and the new Board will avail themselves of it providing adequate finance for the company and an equal opportunity for all Shareholders to participate."

It might be an appropriate question at the EGM as to why the current Board rejected a $10 million underwriting offer to shareholders in preference for a $6 million flawed deal with Stanwell which if followed through results in Icon SH's kissing goodbye to a $380 million asset.

Regards
Thornynut