The Queensland-based company today said the consideration for acquisition with the unspecified group is in the range of $US4-6 million ($A5-7.7 million).

Payment for the 75% interest in the PSC will be a minimum of $1.4 million and the balance in Icon shares.

The company said the proposed acquisition area, also unspecified, has 16 exploration leads, two of which have been drilled as discovery wells.

The discovery wells are early targets for commercial evaluation and Icon said existing infrastructure close to the area will allow for early exploitation of oil and gas.

Drilling targets are generally of the order of 20-30 million barrels and reserves of up to 200-300MMbbl of recoverable oil have been estimated. These reserves have not been independently verified but represent the exploration potential based on the size of the targets, it said.

“This asset is expected to be a substantial addition to Icon’s portfolio of exploration interests and will add value to Icon’s portfolio,” the company said.

“The area covered by the PSC is located in an active exploration and production region with oil and gas production in the areas adjacent to the block.”

The deal, subject to government approval, is expected to be finalised in 80 days.