Dart to List CBM Assets on Singapore Exchange

Dart Energy Limited will undertake a substantial restructure, including a proposed listing of its international portfolio of coal bed methane (CBM) assets on the Singapore Exchange.

This follows recent, unsolicited expressions of interest in the company’s international asset portfolio and a detailed strategic review. As part of this review, the board of Dart concluded that:

– Dart is currently trading at a material discount to both its Australian and international peers and in particular, its international asset portfolio is not appropriately valued by Dart’s current shareholder base;

– Dart has assembled a high quality portfolio of international assets which will benefit from a separate management and funding model; and

– Dart’s Australian assets are well positioned to take advantage of increasing domestic gas prices and future industry consolidation linked to the LNG export market.

Accordingly, the board has approved several recommendations, namely:

– A separate international listing of a minority interest in all of Dart’s international assets, with the newly listed entity to be named “Dart Energy International”;

– A management restructure and creation of a separate board for the international business; and

– The possible introduction of strategic partners at either an asset or corporate level for Dart’s Australian assets.

Commenting on the proposed changes, Dart Chairman, Mr Nick Davies, said:

“The proposed changes are about unlocking value and providing greater see-through transparency on the value of both Dart’s Australian assets and our international portfolio, which currently comprises around 80% of our currently budgeted expenditure over the next 18 months. Our extensive international portfolio is the envy of many and we want to ensure its full development through building a new international shareholder base and the possible introduction of strategic partners at a company or asset level. A separately listed international vehicle can help expedite this.”

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Source: Dart Energy, August 25, 2011;