Australia: Dart Completes Retail Component of Equity Raising

On 18 April 2011, Dart Energy Limited announced a fully underwritten accelerated non-renounceable entitlement offer (Entitlement Offer) to raise approximately A$100 million, comprising an Institutional Entitlement Offer and a Retail Entitlement Offer. The Institutional Entitlement Offer was successfully completed on 20 April 2011, raising approximately A$54 million.

The Retail Entitlement Offer closed at 5.00pm (AEST) on 13 May 2011 and will raise approximately A$46 million in total. Eligible retail shareholders subscribed for approximately 15.1 million new shares (approximately $11.3 million) under the Retail Entitlement Offer. Under the Retail Entitlement Offer, eligible retail shareholders could choose to take up their entitlements in whole, in part, or apply for additional new shares subject to a cap for up to 50% greater than their entitlement.

As the Retail Entitlement Offer is fully underwritten, the balance of approximately 45.9 million new shares (approximately $34.4 million) that were not subscribed for by eligible retail shareholders will be issued to or as directed by the Joint Lead Managers and Underwriters to the Entitlement Offer. The Joint Lead Managers have advised that they have arranged the balance to be placed with institutional investors, including a number of existing shareholders of the company.

The allotment of new shares under the Retail Entitlement Offer will be completed on 23 May 2011 and those shares are expected to commence trading on the Australian Securities Exchange on 24 May 2011.

Dart Chief Executive Officer, Mr Simon Potter, said: “At completion of this capital raising Dart will have free cash of over $150 million, and no debt. Dart’s portfolio-wide forward program of activity is thus fully funded. That program involves drilling over 100 exploration and appraisal wells and commencement of early development work on several projects, which will take 15 to 18 months. During that time Dart expects to rapidly mature its substantial resource base and establish commerciality at a number of projects while seeking early cash flow. Dart’s strategy remains focused on operating in locations with strong energy demand and where attractive margins are available, enabling us to pursue step-change organic growth initiatives at a time when the market is actively pursuing alternative energy investments. We are confident that the work program and other initiatives we have planned will build substantial value for our shareholders.”

[mappress]

Source: Dart Energy, May 19, 2011;