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DART ENERGY LTD - ASX: DTE
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Description
Dart Energy is an Australian S&P/ASX 200 listed company focused on the development of coal bed methane in Australia, Indonesia, China, India, Vietnam, UK and Europe.
Australian Projects
Australia is the world's ninth largest energy producer accounting for around 2.4 percent of global energy production with natural gas becoming an increasingly important source of domestic and export energy. Following the demerger from Arrow Energy, Dart Energy re-entered the Australia CBM industry through the acquisition of Apollo gas, an ASX listed CBM company with a portfolio of 7 CBM blocks and 2 geothermal licences, all located in New South Wales.
In August 2009, Arrow Energy reached an agreement with Apollo Gas to acquire a strategic shareholding stake in Apollo Gas Limited, together with the rights to farm-in to two of the company's coal bed methane tenements in New South Wales to earn up to 50 percent interest. The shareholding stake and farm-in rights were subsequently transferred to Dart Energy. In September 2010, Dart Energy made a recommended offer for all issued securities in Apollo, other than those already owned. The transaction has since been completed and Apollo Gas and the company has since been rebranded Dart Australia.
China Projects
Natural gas is China's fastest growing major energy source. There is a large potential for growth in China gas consumption as it services rapidly growing power, city gas and industrial sector demand.
Natural gas is China's fastest growing major energy source. There is a large potential for growth in China gas consumption as it services rapidly growing power, city gas and industrial sector demand. China presents a significant opportunity for Dart Energy with strong expected growth in gas demand, established supporting infrastructure and attractive netback gas pricing.
Dart Energy has conducted extensive market studies of all the key CBM basins in China and as a result has focused its exploration activities on two key areas: Xinjiang Autonmous Region in western China and Shanxi and Shaanxi Provinces in central China. Focus on securing and maintaining relationships and partnerships with local oil, gas and coal companies, in particular state-owned enterprises which can deliver in-country expertise and assist with access to tenements. Take a multi-tiered approach by seeking greenfield CBM development via PSC particpation, farming in to existing CBM projects and establishing coal mine methane/degassing projects.
India Projects
The Indian market is characterised by strong demand driven by a large population and energy intensive industries. The strong demand, and limited local energy supply has created a significant and growing market for natural gas. India has an estimated 200 Tcf of CBM resources. Currently, there is limited production of CBM in India, however, the country has taken steps to promote the development of the industry in order to address increasing household and industry demand. The Indian Government has formulated a development strategy focused on the award of CBM blocks in a competitive bidding process. Four rounds of bidding have been successfully completed with Dart Energy awarded five blocks to date.
Take a multi-tiered approach by seeking greenfield CBM development via direct licence particpation, farming-in to existing CBM projects and establising coal mine methane/degassing projects. Leverage upon a foundation of strong government relations developed by providing high levels of technical imput to the government regulators to date.
Indonesian Projects
Indonesia is a country rich in coal bed methane resources, estimated at over 450 Tcf. Dart Energy is focusing its activities in the South Sumatra and eastern Kalimantan regions where highly prospective areas have been identified.
The Indian market is characterised by strong demand driven by a large population and energy intensive industries. The strong demand, and limited local energy supply has created a significant and growing market for natural gas. India has an estimated 200 Tcf of CBM resources. Currently, there is limited production of CBM in India, however, the country has taken steps to promote the development of the industry in order to address increasing household and industry demand. The Indian Government has formulated a development strategy focused on the award of CBM blocks in a competitive bidding process. Four rounds of bidding have been successfully completed with Dart Energy awarded five blocks to date.
Take a multi-tiered approach by seeking greenfield CBM development via direct licence particpation, farming-in to existing CBM projects and establising coal mine methane/degassing projects. Leverage upon a foundation of strong government relations developed by providing high levels of technical imput to the government regulators to date.
Vietnam Projects
Energy demand in Vietnam is rising and Dart Energy is currently progressing an opportunity to deliver the country's first coal bed methane project. CBM in Vietnam remains a very early stage industry. Nonetheless, there is a high potential for CBM to supply the domestic gas market, particulalry in northern Vietnam where existing conventional gas sources are nearing depletion and demand is increasing from local industrial customers. CBM is well placed to service this growing market with the Red River Delta in northern Vietnam containing a substantial recoverable coal resource. There is a proposal for the construction of a new pipeline system to connect offshore gas resources to the Red River Delta. It is expected that the pipeline network will have several branches in close proximity to Dart's CBM block.
Europe Projects
Dart Energy's offer to acquire Composite Energy is a geographically strategic, low-cost entry into the European CBM industry.
On 28 February 2011, Dart Energy agreed to acquire the 90% of Composite Energy Limited that it does not already own for approximately US$46.7 million. The transaction represents Dart Energy's entry platform into the European CBM and shale gas industry. It is also an acceleration and replacement of a previous arrangement entered in August 2010 whereby Dart acquired a 10 precent stake in Composite by subscription of US$7 million with options to acquire a further 10% for US$5 million and the remaining 80% prior to June 2011 for US$56 million.
Composite was established in 2004 to pursue CBM and shale business opportunities in Europe. Prior to the acquisition by Dart, it was owned by its founders and management, and strategic and financial investors, including Royal Bank of Scotland and BG Group. Composite current holds 15 UK CBM licences and 3 Poland CBM Licences, and has a pipeline of licence opportunities across Continental Europe that it expects to secure in the near term.
Composite is a fully formed CBM business entity with offices in Scotland and Poland. The company has a staff base of 25 that includes technical, engineering, land access and planning, financial, business development and commercial capabilities. With an extensive geological and commercial database and a strong pipeline licences opportunities in relation to European CBM opportunities , the acquisition of Composite represents a geographically strategic, low-cost entry into European CBM.
Composite's portfolio of CBM assets has 14.8 Tcf of gross OGIP and 0.77 Tcf of gross 2C resource, as certified by Netherland, Sewell & Associates Inc. In addition, Composite has approximately 1.22 Tcf of shale gas OGIP.
Mine For
coal seam gas, coal bed methane
Location of operation(s)
Australia, Indonesia, Vietnam, India, China, Europe, United Kingdom
Address
Level 11, Waterfront Pl, 1 Eagle St
BRISBANE, QLD, Australia
Phone
+61 7 3149 2100
Website
Last Updated
28/03/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
