Icon Energy Limited (Icon Energy) announced a potential new coal seam gas find at Cooper-Eromanga basin in South Australia. The company said that Wakefield No.1 well logs within PEL 218 indicate a series of coal sections in the Winton formation totalling 8.9 meters with gas shows up to 112 units of methane gas.

“This thickness of coal with associated gas shows indicates that commercial potential exists for coal seam gas (csg) production in this area,” said Icon Energy Managing Director, Ray James said.

“The coal seams were penetrated between 820 and 957 meters. “The lowermost coals between 906.9 and 956.8 have the best methane gas shows.”

“When the well was programmed these coals were not considered an objective,” he said.

James said that Icon Energy believed that the potential for a new coal seam gas play in the Nappamerri Trough in PEL218, and within its adjacent proposed Queensland ATP 855P tenement, warranted further work.

“This will include core hole drilling to test the gas content and permeabilities.

“Crucially, the coal depths are within the commercial range allowed by Icon Energy’s gas certifiers, Netherland, Sewell & Associates, Inc. – the world leader in CSG certification,” he said.

James said that the location of the find, where the Moomba to Ballera gas pipeline traverses the central area of PEL 218 and ATP 855P, also increased the economic viability of any new gas resource.

He stressed that the results were preliminary and much work remained to be done.

“Icon Energy has commenced a geological study to determine the coal distribution as part of this process.”

“Sidewall core samples have been recovered from Wakefield No.1 and sent to the laboratory in Brisbane for gas content absorption analysis.”

“In order to fully evaluate the gas resource, it will be necessary to examine the seismic and well data in the permits and drill new core holes to determine coal thickness, gas content and permeability.”

Icon Energy has a working interest of 33.33% in PEL 218 and 80% in ATP 855P.

The ATP 855P permit is yet to be granted by the Queensland Minister for Mines and Energy as Icon Energy is still negotiating a Native Title Agreement with the registered Traditional Owners.

Icon Energy signed a farmin agreement with Adelaide Energy Limited to earn a 33.33% working interest in the Mesozic sedimentary section of PEL 218 in October 2007. Icon Energy’s interest has now been earned through the funding of 50% of the cost of the new seismic data and the drilling of one oil exploration well.