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ICN, ICON ENERGY LIMITED
nipper
post Posted: Feb 27 2012, 08:10 AM
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QUOTE
Icon loss brushed off as investors eye Cooper Basin potential

Richard Hemming February 27, 2012

Oil and gas explorer Icon Energy might have reported another half-year loss last week but that has not stopped shareholders bidding up its share price by 50 per cent in the past eight weeks.

At 25¢, its market cap is $110 million, but one investor - perhaps cheekily - proposed that it was worth "$400 million to $600 million" based on its "near-ology" (which he says refers to having an asset next to a hot asset) of its Cooper Basin exploration acreage.

Along with fellow oil and gas miners Beach Energy and Drill Search, Icon has exploration rights over the biggest shale rock acreage in the Cooper Basin, which is located on the border of Queensland, South Australia and NSW. The land area is immense, about 5670 square kilometres.

Icon is a reminder that there are some companies for whom profit results are very much a secondary consideration. In this case, the minnow's close association with Beach Energy, whose market cap is almost $2 billion, is the key. Icon and Beach own 40 per cent and 60 per cent respectively of the block ATP 855P. This is next door to a Beach-owned block, PEL 218, where there has already been excitement. Beach drilled one well last year and came out with a 2 trillion cubic feet "contingent resource" of gas.

This is huge, but unproven. Beach will have to do much more drilling to get the resource to the stage where it's classified as a "reserve" and profits can be inferred.

To give you an idea of where this could lead, Woodside's Pluto LNG train, located north of Karratha in Western Australia, which is 4 trillion cubic feet of proven gas reserves, is valued by Bell Potter at $12 billion.

What is being "inferred" by many is that ATP855's potential is going up. This is based on the drilling in PEL 218 and Beach's expertise in the dark art of fracking.

Beach is the operator of ATP 855, and has committed to drill the well in the second half of this year. It will be drilled horizontally by Beach, which means its potential could sky-rocket.

In the world of speculation, nearology can equate to profit certainty.


Read more: http://www.smh.com.au/business/icon-loss-b...l#ixzz1nWoxQZPL




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mme
post Posted: Mar 30 2011, 05:41 AM
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In Reply To: camaybay's post @ Mar 29 2011, 08:48 PM

They've done it back to front but:

Icon Energy is free to source feedstock gas from its own or third party tenements, subject to the gas and LNG meeting the international standard LNG specifications to be determined by accredited experts appointed by Icon Energy.

The supply terms give Icon Energy flexibility to supplement its own resources with suitable contracted third party feedstock gas and which could serve to unlock stranded gas in Queensland and elsewhere.
“I envisage commencing discussions with identified and prospective co-venturers in the next couple of months, with a view to building Icon Energy’s gas bank”, Mr James said.
“Another critical term of the agreement with Shantou SinoEnergy is that Icon Energy is not locked into supplying LNG from a single nominated port. We have already considered Queensland and South Australian based options and are currently in the process of reviewing co-operative arrangements with one of the many Gladstone LNG projects for supply out of Queensland.

Who is it?? biggrin.gif


 
camaybay
post Posted: Mar 29 2011, 08:48 PM
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In Reply To: mme's post @ Mar 29 2011, 07:16 PM

I think it is disbelief,and the resources needed to achieve the goal, that made the market to sell down on the announcement .

cheers

 
mme
post Posted: Mar 29 2011, 07:16 PM
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In Reply To: simongould's post @ Mar 29 2011, 02:39 PM

Let the dust settle. I don't think the market believed or realised the enormity of today's anouncement. Wonder who they will also source from BOW maybe??? biggrin.gif

 
simongould
post Posted: Mar 29 2011, 02:39 PM
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In Reply To: hungry's post @ Mar 29 2011, 01:20 PM

bit of a disapointing response to the news. granted there is no gas yet but there is still a hell of an upside to this company

 
hungry
post Posted: Mar 29 2011, 01:20 PM
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In Reply To: mme's post @ Mar 28 2011, 03:26 PM

Hi mme
Yep, still holding. Bit hard to get out in a halt laugh.gif
I agree it should be good news. The recent vol along with sp rise, suggests someone was in the know. Now how could that happen?
We're just the ignorant dummies along for the ride.
Fingers xed

 


simongould
post Posted: Mar 29 2011, 12:23 PM
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In Reply To: mme's post @ Mar 29 2011, 10:58 AM

what are you thoughts on a fair share price if the announcement confirms the deal? .60 +?



 
mme
post Posted: Mar 29 2011, 10:58 AM
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In Reply To: simongould's post @ Mar 29 2011, 09:13 AM

Yeah who knows. Having said that they haven't had a trading halt previously for the China investment so either it's the news we've been waiting for or it's they've pulled out?? Personally I think it's the news we've been waiting for. biggrin.gif

 
simongould
post Posted: Mar 29 2011, 09:13 AM
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In Reply To: mme's post @ Mar 28 2011, 03:26 PM

fingers crossed for a positive announcement today! any more postponing of the agreement and we will see 16cents by tomorrow afternoon unfortunately..

 
mme
post Posted: Mar 28 2011, 03:26 PM
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In Reply To: hungry's post @ Mar 25 2011, 03:37 PM

Still holding Hungry? biggrin.gif

 
 


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