Dart Energy announced that it has entered into a farm-out agreement relating to thirteen of its U.K. licences with GDF SUEZ E&P UK Ltd. This comprises part of a broader strategic cooperation n relation to unconventional gas being implemented between the two companies at the same time.
GDF SUEZ E&P UK is a wholly owned subsidiary of GDF SUEZ, a Paris-headquartered global energy group, with a significant exploration and production presence in the U.K, in particular as operator of Cygnus, one of the largest undeveloped gas fields in the Southern North Sea discovered in the last 25 years.
GDF SUEZ is the number one independent power producer in the world, and is listed on the Paris, Brussels and Luxembourg stock exchanges, has annual revenues in excess of US$120 billion, and employs more than 130,000 employees worldwide. GDF SUEZ E&P UK is one of the UK’s leading operators with a reputation for safe and responsible exploration and production activities.
Key aspects of the farm-out are:
Alongside the farm-out, Dart and GDF SUEZ have established a broader strategic cooperation between the two companies, focussed on unconventional gas activities (and especially shale). This includes provision of various support services from GDF SUEZ and partner company SUEZ Environnement in the field of environmental service and water management, and the sharing of best practice.
Commenting, John McGoldrick, Dart Chief Executive Officer said: “The level of interest in U.K. unconventional gas is growing almost daily. Dart holds one of the U.K.’s largest unconventional acreage positions, and today’s agreement represents a significant development for Dart. We will receive US$12 million in cash, but more importantly Dart will be funded into a substantial work program consisting of up to 4 shale and 10 CBM wells aimed at establishing the viability of both shale and CBM on 13 of our Bowland licences, at the same time retaining a 75% interest and operatorship. We are especially pleased that our new partner is GDF SUEZ, a group with significant capabilities, extensive experience and existing businesses across the gas value chain in the U.K. and internationally. We see enormous value in the broader strategic cooperation being implemented between our companies, and we welcome GDF SUEZ’S entry into onshore U.K. unconventionals , bringing valuable expertise at a critical time for the gas industry in this country”.
Commenting, Jean-Marie Dauger, Executive Vice-President, GDF SUEZ, in charge of the Global Gas & LNG Business Line , said: “We are very confident about the potential of shale gas in the U.K., and its anticipated contributions to U.K. energy security. GDF SUEZ is pleased to enter this first investment in UK shale gas as it complements the large presence of the Group in the U.K. We look forward to working with our partner, Dart Energy, to unlock the potential of these licences”.
[mappress] LNG World News Staff, October 22, 2013; Image: Dart Energy