(MENAFN - ProactiveInvestors - Australia)Icon Energy (ASX: ICN) has completed a A10 million capital raising to fund its Cooper Basin unconventional oil and gas exploration drilling program.
The funds were raised through a placement of 45.5 million new shares priced at A0.22 each to institutional, sophisticated and professional investors.
Proceeds will be used for Icon's share of costs for drilling and fracture stimulation of Halifax-1 (1.8 million) as well as a further well in ATP 855P, Queensland, that will also be fracced (8.2 million).
This represents a 18.5% discount to the last closing price of Icon shares on 9 November prior to entering the trading halt.
Halifax-1 has encountered gas saturation throughout the entire Permian zone, which covers more than 1.3 kilometres and encompasses the shallowest Toolachee Formation right down to the Patchawarra Formation.
The well has also intersected the thickest Roseneath Shale, Epsilon Formation and Murteree Shale (REM) section, at about 460 metres, of any other Nappamerri Trough wells drilled to date. The Patchawarra Formation is greater than 490 metres thick here.
In addition to the primary Permian targets in the well, earlier drill stem testing of a conventional gas bearing sand in the Triassic interval, immediately above the Toolachee Formation, had flowed gas at a rate of about 200,000 cubic feet per day.
The joint venture, led by Cooper Basin oil and gas producer Beach Energy (ASX: BPT), expects to carry out hydraulic stimulation of Halifax-1 in late November 2012 after which it will be placed on an extended flow test of several weeks.
Data from the test and core analysis will allow a resource estimate to be made in the first quarter of 2013.
Icon is also planning to carry out a share purchase plan that offers shareholders up to A15,000 in new shares at the same price as the placement.
While a cap for the SPP will be determined by Icon's board, proceeds will be used for additional technical work at ATP 855P and for general corporate purposes.