DART FARMS OUT UK TENEMENTS

Written on the 13 January 2014

DART FARMS OUT UK TENEMENTS

DART Energy (ASX:DTE) has entered a farm-in agreement with one of Europe’s largest gas producers in two of its English tenements.

The agreement with Total E&P UK covers PEDL139 and PEDL140, covering about 240 square kilometres, in the Gainsborough Trough’s Bowland Shale deposit.

The company will pay $1.6 in back payments to DTE, plus invest a further $46.5 million in developing the licences in exchange for 40 per cent ownership.

Total UK joins Egdon Resources UK (14.5 per cent), Island Gas (14.5 per cent) and eCorp Oil & Gas (13.5 per cent) as participants in the licences, while Dart retains a 17.5 per cent stake.
Work will include test drilling and construction of various infrastructure on the site.

Total UK can withdraw from the agreement after spending $19.5 million, but loses all rights to the tenements if it does. Dart will also receive a cash payment of US$1million upon completion.

Dart Chief Executive Officer, John McGoldrick, says the deal is part of a strategy to unlock the potential of DTE’s UK shale portfolio.

“Late last year we entered into a farm-out and strategic cooperation agreement with GDF SUEZ covering thirteen licences, and the Total UK transaction covers another two,” he says in a statement to the ASX this morning.

“Between these two transactions Dart has established partnerships with two leading international oil and gas companies, and will see an extensive shale gas exploration program across its portfolio over the next two to three years – up to six shale wells and total expenditure of up to US$80 million.”

McGoldrick says almost all of the funding will be obtained through farm-outs.

Total UK senior vice president for Northern Europe, Patrice de Vives, says the agreement is an important milestone for the company.

“This opportunity ... opens a new chapter for the subsidiary in a promising onshore play.”

DTE is trading up 10 per cent ($0.012) this morning, at $0.127 per unit.


Latest News

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter