UPDATE: STANWELL COMMITS TO ICON

STANWELL Corporation has committed $30 million to Stage 2 of a farmin agreement at Icon Energy’s ATP 626P well in the Surat Basin.

It means that a total of $36 million will be committed to establishing 340 PJ of 2P reserves in ATP 626P, located north of Goondiwindi.

Icon Energy announced the farmin deal with Stanwell Corporation in December 2008, with Stage 1 of the agreement comprising the $6 million Lydia pilot program.

Icon Energy managing director Ray James, says Stanwell Corporation would now be assigned an immediate 50 per cent working interest in the farmin area covering four of 30 blocks within ATP 626P, along with a 1 per cent title interest in the whole of ATP 626P.

He said that upon reaching a target of 340PJ of 2P reserves, an application would be made to the Queensland Government for petroleum licences over the areas covered by that reserve of coal seam gas.

“This reserve could be established within the current four block farmin area however Stanwell Corporation also has the right to extend the farmin area until the required reserves are found and are certified by leading international reserve certifier, Netherland, Sewell & Associates, Inc. (NSAI),” said James in a statement to the ASX.

Icon shares were placed in a trading halt today prior to the announcement.

Shares last traded at 20.5c.