Dart Energy announced that it has instituted a restructuring, cost cutting and refocusing program. This comes in response to current market conditions, a reassessment of the Company’s priority projects, recent decisions in Australia by the NSW and Federal Governments relating to Coal Seam Gas (CSG) and shareholder feedback.
In summary, the Company’s forward strategy is focused on maximising the value of the company’s UK portfolio, and taking those assets into cash flow on a 12 – 18 month view, while reducing the cash draw from the balance of the portfolio.
The following are the key features of the changes. Additional details are included in the separate presentation.
Strategy – Focus on UK
Cost Reductions
Board & Management
Funding and Dart International IPO
Commenting, Nick Davies, Chairman , said:
“The Board of Dart has taken aggressive steps to respond to market conditions and shareholder feedback. We have done so in a comprehensive fashion.
“With the changes we are implementing, and with the 2013 planned work programme now focusing primarily on the UK, existing funds will meet the company’s needs for the next 12 months. Value-adding joint ventures of the UK assets and other project sell-down initiatives are underway and attracting significant interest.
“The Board of Dart is extremely disappointed with the uncertainty created by recent NSW and Federal government decisions in relation to CSG development in Australia. The consequence is that investment is leaving the country, field operations are being suspended, Australian jobs are being lost, and the impending energy crisis in New South Wales is not being addressed, and indeed, will only get worse. This is in direct contrast to the United Kingdom, where the Government is actively seeking to support the responsible development of unconventional gas resources.
“It is with regret that Robbert de Weijer, CEO of Australia, will be leaving the Company. I would like to thank Robbert for his excellent leadership and his dedicated and passionate efforts to take the CSG industry forward in NSW. Until his departure, Robbert will lead an initiative to identify consolidation and farm-out opportunities for the Australian assets.
“We have taken steps to reposition Dart so as to focus on building value in the UK in the near-term, through our CSG projects in Scotland and our shale gas assets in England. In the mid-term we still see considerable value in our Indonesian assets, the shale gas opportunity in China, and through preserving our high quality blocks in Australia until Government policies are reformulated”.
[mappress] LNG World News Staff, April 02, 2013; Image: Dart