Icon to bag another CSG permit, progresses work in Surat

The permit, ATP 849P, covers 3853 square kilometres and has one of the largest sub-crops of Walloon Coal Measures in relatively shallow depths at about 300m.

According to the company’s website, ATP 849P will be awarded for 12 years with $5.2 million compulsory government expenditure in the first four years.

In addition, one-third of the area must be relinquished at the end of each four-year term unless a production licence is granted to produce gas.

Icon said it was looking at drilling two CSG wells in the permit and planned to start work on the permit once it has been granted.

The company holds an 80% interest in the permit.

Meanwhile, in ATP 626P, Icon said the drilling of an additional exploration well, Lydia-5, as part of the Lydia Pilot program was progressing with the well reaching the Walloon Coal Measures.

Casing has been cemented to the top of the Walloons and the target depth of 922m is expected to be reached later this week.

Lydia-5 is being drilled to test the top of the Hutton Sandstone below the Walloons to determine its suitability as a possible gas storage reservoir.

Additional pressure monitors will also be installed in the well so it can serve as an observation well for the Lydia pilot.

Icon is also getting ready to start dewatering the Lydia-2 well next week and record seismic in the permit.

The seismic program will be carried out by Terrex Seismic and will start around August 21.

Wednesday, 5 August 2009

PNN