Dart Energy Completes PEL445 Transfer in NSW, Australia

Dart Energy announced that the transfer of Petroleum Exploration Licence 445 from Arrow Energy has been completed.

PEL 445 is a sizeable licence, covering 7,076km² of the Clarence-Moreton Basin, in northern New South Wales, Australia. Exploration to date has shown the coals of the Walloon Coal Measures contain good to excellent gas composition and are well saturated. It is believed that the Walloon Coal Measures contains a significant volume of Gas-in-place within the PEL445 area. In addition, potential secondary targets have been identified in the sandstones of the Bundamba Group and the deeper Ipswich Coal Measures.

The addition of PEL445 will increase Dart’s total NSW portfolio to eight licences, with a total area of approximately 26,000 km2 , representing one of the largest CSG and unconventional gas acreage holdings in the State. The transfer of PEL 445 to Dart was agreed to approximately 10 months ago, and completion has been pending regulatory approval since. The transaction to acquire PEL 445 also included the settlement of various outstanding liabilities between Dart and Arrow relating to the demerger of Dart from Arrow in 2010. The total consideration was AUD$1.9mof which circa AUD$200,000 related to PEL 445.

PEL 445 has minimal commitments, and thus fits with Dart’s current strategy in NSW, being to retain a sizeable acreage position at low cost, pending a more supportive policy regime for CSG development in that State. Dart welcomes recent statements indicating renewed support from the Australian Federal Government for the development of the CSG industry in New South Wales, and the recognition that the local CSG industry will play a key role in the addressing the pending regional gas shortage.

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LNG World News Staff, September 25, 2013; Image: Dart Energy