ASX Suspension Persists as Icon Energy Awaits Native Title Clearance for PL-1144
Icon Energy Limited has received a Notice of Proposed Grant for Petroleum Lease PL-1144 in the Cooper Basin, marking a significant step toward resource development. Meanwhile, the company secured a $300,000 unsecured loan under revised terms, though its shares remain suspended pending native title negotiations and ASX approval.
- Notice of Proposed Grant received for Petroleum Lease PL-1144 over ATP 855
- PL-1144 expected to qualify as a Contingent Resource (3C) for conventional gas
- Secured $300,000 unsecured, interest-free loan replacing planned share subscription
- No exploration activities conducted during the quarter
- Shares remain suspended pending native title negotiations and ASX approval
Progress on Petroleum Lease PL-1144
Icon Energy Limited (ASX: ICN) has taken a pivotal step forward with the Department of Natural Resources and Mines issuing a Notice of Proposed Grant for Petroleum Lease PL-1144, covering the entire ATP 855 permit area in the Cooper Basin. This lease application, submitted in August 2024, targets the development of a conventional gas resource trapped in natural fractures within high-pressure sediments.
The granting of PL-1144 is anticipated to meet the criteria for a Contingent Resource (3C) classification, a positive indicator for the company’s resource valuation and future development potential. The lease process includes engagement with native title holders, notably the Wangkumarra Kawalanyi Aboriginal Corporation and the Yandruwandha Yawarrawarrka Traditional Landowners, reflecting ongoing negotiations under the Native Title Act.
Financial Maneuvers Amid Operational Pause
During the quarter, Icon Energy reported no exploration activities, reflecting a strategic pause as it focuses on securing tenure and regulatory approvals. The company ended the period with a cash balance of $646,641, bolstered by a $300,000 unsecured, interest-free loan from Paradise Marine Pty Ltd, trustee for the James Family Superannuation Fund. This loan replaces a previously planned share subscription, pending shareholder approval for conversion into equity.
Operational cash flows remained negative, with net outflows from operating and investing activities, underscoring the company’s current developmental stage. Notably, no payments were made to related parties, and directors’ fees remain suspended, indicating tight cost controls during this period.
Shares Suspension and Market Implications
Icon Energy’s shares continue to be suspended from quotation on the ASX, a status the company aims to lift once native title negotiations advance sufficiently and ASX approval is secured. This suspension limits liquidity and trading activity, posing a challenge for investors awaiting clearer signals on the company’s operational progress and capital structure.
The company’s top 20 shareholders include key insiders and institutional holders, with Ray James, the Chairman, holding the largest stake. The shareholder base’s composition will be critical when the company seeks approval to convert the loan into shares, potentially diluting existing holdings but providing essential funding.
Looking Ahead
Icon Energy’s immediate focus will be on progressing native title agreements and securing the formal grant of PL-1144, which could unlock the resource’s value and pave the way for exploration and development activities. The financing arrangement provides a short-term liquidity buffer, but the company’s ability to raise further capital and resume exploration will be closely watched by the market.
Bottom Line?
Icon Energy’s path to unlocking its Cooper Basin gas resource hinges on native title progress and shareholder backing for its financing strategy.
Questions in the middle?
- What is the timeline for finalising native title negotiations and securing the Petroleum Lease grant?
- How will the conversion of the $300,000 loan into equity impact shareholder dilution and capital structure?
- When might Icon Energy resume exploration activities and potentially lift the ASX suspension?
