Dart Forms Dart Energy International Shale (Australia)

Dart Energy Limited announced the formation of Dart Energy International Shale Pte Ltd, a wholly owned subsidiary and business unit of Dart which will manage, grow and monetise Dart’s growing shale gas resources.

During 2011 three major transactions have resulted in Dart becoming one of Europe’s largest unconventional gas companies.

1. February 2011 – Dart accelerated the acquisition of the remaining 90% of Composite Energy that it did not already own, creating a substantial base of business in Europe, with 15 licences in the U.K. and 3 licences in Poland. During the year independent resource assessment work led to the certification of CBM reserves and resources across this portfolio, including the assessment of up to 12TCF of shale best estimate gas-in-place potential, net to Dart.

2. December 2011 – Dart restructured its arrangements with the BG Group such that Dart agreed to acquire their 50% interest in 14 CBM licence areas in the U.K., and an exclusive three month option over a 100% interest in two shale prospective licences areas in Germany (Saxon I and Saxon II). The addition of the CBM resource essentially doubled the Dart Europe prospective resource position. Dart believes that these German licences could have a multi TCF shale gas-in-place potential. An independent assessment of shale gas-in-place potential on these German licences will be conducted in the first quarter of 2012.

3. December 2011 – Dart agreed to acquire all of the U.K. unconventional gas exploration business of Greenpark Energy Limited. This includes 22 licences in the major onshore CBM and shale gas potential regions across the U.K. In addition, Dart has also secured an exclusive option over interests in licences held by Greenpark in Poland and Spain, which again are considered prospective for both CBM and shale gas. Dart believes that 7 of Greenpark’s U.K. licences are also prospective for shale gas and could have a multi TCF shale gas-in-place potential. An independent assessment of shale gas-in-place potential on these licences will be conducted in the first quarter of 2012. Completion of this transaction is subject to certain conditions precedent, which are expected to be satisfied over the coming months.

As a result of these transactions, Dart has now established a substantial European portfolio of unconventional assets, either owned or under option, that, in addition to CBM, includes significant opportunity for shale gas prospectivity spanning multiple European jurisdictions characterised by large gas deficits, reliance on imported gas, stable regulatory regimes, extensive and accessible infrastructure, and amongst the world’s highest current gas prices. Dart said it  believes that these factors would serve as catalysts to early monetisation of unconventional gas resources as part of the resource maturation process (i.e. without there being a need to “prove up” significant amount of reserves).

Commenting on the creation of Dart Shale, Dart Executive Chairman Mr Nick Davies said:

“When we talk to investors, analysts and our shareholders, we are frequently asked: “What is Dart’s shale gas strategy?” Shale gas is an unconventional gas resource of enormous potential that has rapidly transformed the North American energy market, and has similar potential in Europe and many parts of Asia. Extraction of shale gas has many similarities to extraction of CBM, although there are also some major differences, including a very different cost equation on a per well basis.

It is therefore logical that Dart should expand into the shale gas arena, and for some time we have been seeking to do so, but in a manner where we can be confident that our expertise, entrepreneurial spirit and low-cost approach will position us well and make a difference. We have now assembled an initial shale gas portfolio that although highly prospective, requires relatively low capital commitment over the next 2-3 years, and is well suited to Dart’s experience and capabilities. Our aim is to further grow this shale portfolio in a low-cost fashion, and seek to bring in funding partners at the appropriate time.

We also see our European shale portfolio as being an ideal stepping stone into the rapidly emerging Asian shale gas industry, where multiple governments are planning shale gas bidding rounds over the next several years. Having an existing portfolio and activity across Europe will position us well and enable us to compete effectively to secure attractive shale licences in Asia”.

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LNG World News Staff, January 16, 2012