NEW PROJET -
PEP 172
PEP172 - New Acquisition
In August 2011, following a competitive bidding process, the Victorian DPI informed Icon Energy that it is the preferred tenderer for a second tenement in Victoria's Gippsland Basin, PEP172.
This tenement is located to the north of PEP 170.
PEP172 Project Development
Icon Energy has elected to retain all crown land contained in the area of PEP172 and to complete the future act provisions of Part 2, Division 3 of the NT Act by entering into an indigenous land use agreement with the relevant native title parties within 2 years.
Once an indigenous land use agreement has been reached in accordance with the future act provisions of the NT Act, and Icon Energy has met all legislative requirements of the Petroleum Act 1998 (Vic), the Victorian DPI will consider whether to grant Icon Energy with the exploration permit.
Once PEP172 is granted by the Victorian DPI to Icon Energy, Icon Energy has committed to expend $1.25 million in the first year of the PEP172 permit. This expenditure will relate to 200 kilometres of 2D seismic acquisition and reprocessing.
Prospective Resource
The Company's main focus will be the Strzelecki Group. Multiple intra-Strzelecki reservoirs will also be explored, and the Company considers that stratigraphic plays are important targets.
Icon Energy's shallower objective will be the Oligeocene Greensand unit of the Lakes Entrance Formation. The Company considers that the thick Lakes Entrance tight Marls provide the adequate seal as evidenced by the Lakes Entrance oil field. The second target is the Intra-Latrobe section. The sandstones of the Middle and Lower Latrobe Group will also be addressed.
Well locations will be identified incorporating the aforementioned techniques. All wells will be designed such that later stimulation can be applied. The Company's focus will be upon discovering gas fields and new oil fields and developing appropriate completion techniques to bring the fields into commercial production as soon as possible.
Icon Energy's advantageous location in the Gippsland Basin
Both the PEP170 and PEP172 permits are located near to one of Australia's major oil and gas processing plants, Exxon Mobil's Longford plant. Crude oil and gas are transported via pipeline from offshore facilities in the Gippsland Basin to the Longford Crude Stabilisation Plant where they are separated into wet gas, LPG and stabilised crude oil. The stabilised crude oil is piped to Long Island Point on Westernport Bay where it is either shipped interstate or internationally or piped to the refineries in Altona or Geelong.
Once Icon Energy extracts the resources from PEP170 and PEP172, there are various ports in the Gippsland area that maybe be utilised to transport its resources.
The Port of Corner Inlet and Port Albert, which is located less than 70km south of PEP170, is the largest water area of the Gippsland Ports. The Port encompasses the waters adjacent to Wilson's Promontory in the vicinity of Rabbit Island through to McLoughlins Beach at the western end of Ninety Mile Beach. The Port can be accessed by several entrances, with the main channel being into Corner Inlet. The Port waters also include Barry Beach, Port Welshpool, Port Albert and Port Franklin.
The Port is easily reached by road and is adjacent to many towns of South Gippsland including Foster, Port Franklin, Welshpool, Port Welshpool and Port Albert.
The Port caters for a wide range of users, which include larger commercial vessels using ExxonMobil's Barry Beach Marine Terminal and Port Welshpool for the support of ExxonMobil's oil and gas facilities and Origin Energy's gas facility in Bass Strait. The Port also acts as a pickup and delivery base for several small cargo vessels that operate between Tasmania and the Gippsland region, utilising the roll-on/roll-off facility. Fuel is available by appointment with the local fuel distributors at Port Welshpool and Port Albert.