A binding Letter of Intent has been signed over the three leases held by Icon Oil US LLC (Icon) and a subsidiary of Horizon Oil Limited (Horizon) at Bayou Choctaw with agreement to be finalised by late June.

“The introduction of CLK as Operator and managing joint venture partner is a significant accomplishment as CLK has over 25 years drilling experience in the Gulf Coast of the USA,” said Martin Pyecroft, chairman of Icon Energy.

“CLK has an exploration success rate exceeding 50% and has been instrumental in the discovery of numerous oil and gas fields that have produced in excess of four trillion cubic feet of gas.”

Rick Gardner, president and CEO of CLK, said, “I am very excited about this new venture as it is one of the few significant proven undeveloped oil and gas reserves with considerable upside potential. CLK’s expertise in evaluating 3D seismic data and development drilling will assist in optimal placing of development wells at Bayou Choctaw.”

The agreement reached should enable Icon and its joint venture partners to re-commence drilling in the second half of this year.

First Australian Resources had an option to participate but has withdrawn its interest in the permit.