Dart Energy provided an update on its activities in the United Kingdom in relation to the company’s coal bed methane (CBM) assets in Scotland, and shale assets in England.
Coal Bed Methane Activities
PEDL 133 Reserves Update
PEDL 133 Planning Appeal
Shale Activities
Cuadrilla Transaction
Privately held UK shale gas explorer, Cuadrilla, announced on 13 June 2013 a transaction whereby a major UK oil and gas producer and integrated energy company, Centrica Plc (market cap £19 billion), would acquire and farm-in to Cuadrilla’s shale gas project in the Western Bowland shale. Centrica will acquire a 25% interest in Cuadrilla’s PEDL 165 licence for a cash consideration of £40 million.
Thereafter, Centrica will fund the cost of a six well exploration program (estimated at £60 million) and fund a further £60 million program on a contingent basis if after initial exploration the project moves into development.
Dart has a sizable acreage position in the same shale play, and thus believes the Cuadrilla-Centrica transaction has provided validation of the value inherent in Dart’s acreage. Specifically Dart has:
In addition to its position in the Western Bowland, Dart has a sizeable acreage position in the Eastern Bowland shale, where Dart is the largest single licence holder. Specifically Dart has:
Shale Farm-out Process
Commenting, CEO of Dart, John McGoldrick , said: “ In March we restructured Dart, establishing as the key focus areas and priorities for our company the assets we hold in the UK – both shale and coal bed methane. We are now seeking to progress the exploration and development of these assets. In the case of coal bed methane, we have now secured our first 1P reserves, and appealed for a planning determination to the Scottish Government, which if successful would allow us to move that project forward into full development. In the case of our sizeable UK shale gas portfolio, we are actively seeking farm-out partners, and are encouraged by the vote of confidence in the sector by Centrica’s recent investment in the Cuadrilla licence area. We hope over the coming months to be able to update the market on our own farm-out process, as well as the process and expected timeline for a decision on PEDL 133”.