|Tuesday, 29 June 2004|
Icon Energy's outlook seems better every day in the US with the beleaguered Australian company signing a Purchase and Sale Agreement with CLK Energy and Horizon Oil to develop the Bayou Choctaw Oil and Gas Field in Louisiana USA.
Under the agreement CLK has committed to a comprehensive work over program, a new well drilling development program and a cash and production payment to Icon with a total value of $11 million.
CLK has committed to early drilling operations and it is anticipated that the first work over well will commence in early August with a total of five existing wells to be re-completed in the initial phase of the drilling program.
Additionally Horizon will be carried through the $5 million re-completion and development program and will retain a 19% interest in the acreage surrounding the Bayou Choctaw salt dome and 14-28.5% interest in acreage north of the Dome along with a $1.3 million upfront payment.
Deeper new wells to intersect the proven oil and gas reserves will not commence before the 3D seismic data has been reprocessed and this has already commenced. CLK is committed by contract to drill the first deep well before the end of the year but Rick Gardener, CEO of CLK, has expressed the desire to drill this well as soon as the seismic data reprocessing and review has been completed.
"Icon is very pleased with the outcome of the negotiations with several parties, over the past six months,
which resulted in the selection of CLK as our preferred partner and operator," said Raymond James, managing director of Icon Energy.
"The considerable upside, over and above the stated oil and gas reserves, could make this project a company maker for Icon over the next few years."
Click here to read the rest of today's news stories.