Icon Energy is concentrating
its efforts on obtaining 2P reserves
to satisfy its sale agreements:

(a) Gas Supply Agreement signed with Stanwell in August 2010 requiring 337.5 PJ of 2P reserves
The Gas Supply Agreement signed with Stanwell in August 2010 is contingent on Stanwell making a development commitment in ATP626P. This development commitment will (at Stanwell's discretion) be made once a minimum required reserve of 337.5 PJ of 2P reserves in ATP626P is certified.

(b) LNG Sales Agreement signed with Shantou SinoEnergy in March 2011 requiring 2,121 PJ of 2P reserves
The LNG Sales Agreement signed with Shantou SinoEnergy in March 2011 states that Icon Energy will supply 40,000,000 tonnes of LNG to Shantou SinoEnergy over 20 years. It is a condition of the LNG Sales Agreement that, by March 2013, Icon Energy delivers to Shantou SinoEnergy a reserves certificate of at least 2 TCF of 2P reserves of natural gas, which converts to 2,121 PJ of 2P reserves. These 2P reserves can be sourced by Icon Energy from its own or third party tenements, subject to the gas and LNG meeting the international standard LNG specifications determined by accredited experts appointed by Icon Energy.

Icon Energy will now focus its strategic objectives on vigorous exploration of its tenements in the Surat-Bowen Basin, the Cooper-Eromanga Basin and the Gippsland Basin, with a view to obtaining 2P reserves to satisfy both sale agreements.