Dart Energy Completes Share Issue (Australia)
Dart Energy Limited today completed the issue of new shares pursuant to the recent entitlement offer, the retail component of which was settled on Friday, 20 May 2011. New shares issued will begin trading on the ASX on Tuesday, 24 May 2011.
The entitlement offer raised a total of approximately AUD$100 million, increasing Dart’s current available cash resources to over AUD$150 million, with no debt.
The funds will be used to accelerate an 18 month portfolio-wide work program involving the drilling of over 100 exploration and appraisal wells and the start of development work on several projects. The focus is on creating value for shareholders by progressing Dart’s large portfolio rapidly through exploration, appraisal and pilots, reserve certification and early development/monetisation. Dart has made an aggressive start to the program. Highlights include:
• Seven rigs currently operating – five drilling pilot/appraisal wells and two drilling exploration wells;
• Four extra rigs will soon be mobilised in China for both the Dajing and Liulin project areas;
• In the third quarter of 2011, Dart will ramp up drilling activities in Australia, the UK, Poland and India, with over 20 separate rigs across the portfolio to be utilised during the year; and
•15 rigs are expected to still be active in the fourth quarter allowing for a continual program extending into 2012 and completion of the total exploration and appraisal program (over 100 wells).
Dart expects to complete between 50 – 60 wells across the portfolio during 2011, or approximately half of the aggregate 109 well program identified for the next 12 – 18 months during the recent capital raising.
The 2011 rig activity across the portfolio is summarised as follows:
Dart Chief Executive Officer, Simon Potter, said: “In 2010 the foundations of Dart were set. The next phase in 2011 / 2012 is one of execution. Our successful capital raising was designed to enable us to accelerate a substantial, portfolio-wide campaign and we are now well underway. We expect that by mid-year we will have eleven rigs deployed in three countries, increasing to 15 rigs in six countries during the fourth quarter. Our strategy is clear – to put “money in the ground” across the portfolio so as to rapidly mature our sizeable resource base, to establish commerciality at multiple projects and to demonstrate capacity to monetise our gas in the near-term. We believe that doing this successfully over the coming 12 – 18 months will build sustainable long-term value for our shareholders.”
Source: Dart Energy, May 23, 2011;