Dart Energy

Dart Energy is an exploration and production company working in the unconventional gas industry. As of September 2014 it is owned by IGas Energy.

One of its flagship projects is a coalbed methane (CBM) field at Airth, near Falkirk in Scotland. This will become Britain's first commercial site of coalbed methane if Dart Energy UK wins the planning inquiry that began in March 2014 after overwhelming public opposition. A final decision, which has been delayed, is expected after October 2014.

Dart's head office is based in Singapore. It also has offices in the UK, Germany, Belgium, Australia, Indonesia and China.

Merger with IGas Energy UK

In May 2014 Dart agreed to a merger with IGas Energy, which is listed on London's secondary AIM market, via a scheme of arrangement. On 1 September 2014 IGas shareholders approved the proposed acquisition. Dart Energy shareholders voted on 10 September 2014 and approved the merger.

The UK's Competitions and Markets Authority launched an investigation into IGas's acquisition of Dart Energy in August 2014. It is due to rule on Phase 1 of its review of on 20 October 2014.

Activities

Australia

Dart Energy was spun out of Queensland CSG company Arrow Energy before global giants Shell and PetroChina acquired Arrow.

Dart Energy has a portfolio of eight 'Petroleum Exploration Licences' (PELs) all located in the state of New South Wales (NSW). Following the NSW government's decision to ban coalbed methane activity within 2km of residential areas, Dart suspended all field operations in NSW on 2 April 2013 and slashed its workforce by 70 per cent, pending further 'clarity and certainty around State and Federal policies to support the industry'. It said:

The company intends to preserve its high quality licence areas in Australia until Government policies are reformulated and an initiative is underway to identify consolidation and farm-out opportunities for the Australian assets.

Nick Davies, Dart Energy's Chairman, said:

“The Board of Dart is extremely disappointed with the uncertainty created by recent NSW and Federal government decisions in relation to CSG development in Australia. The consequence is that investment is leaving the country, field operations are being suspended, Australian jobs are being lost, and the impending energy crisis in New South Wales is not being addressed, and indeed, will only get worse. This is in direct contrast to the United Kingdom, where the Government is actively seeking to support the responsible development of unconventional gas resources.”

Several months later in August 2013 the Australian Securities Exchange halted trading on Dart, shortly after HSBC froze Dart's substantial loan facility, 'citing delays with their coalbed methane project at Airth near Falkirk in Scotland' and a plummeting share price. Shares were suspended at 10 Australian cents. The company later announced a capital raising totalling $20.7 million, and resumed trading on the ASX in October 2013.

UK

Dart's flagship project at Airth in Scotland faces strong community opposition and has been beset by delays. The Scottish press reported in August 2013 that:

The company has appealed their application for 22 new wells, a gas and water treatment facility and a network of new pipelines, to the Scottish Government on the grounds of non-determination. A public enquiry is expected to begin in the second half of October (2013).

Dart Energy's website sets out its 'strategic themes' for the UK:

• Commercialise significant volumes of already identified CBM resources and supply gas into the National Gas Transmission System ("NTS") and Local Transmission System (“LTS”) pipelines (or other monetisation solutions)
• Identify prospective shale gas basins across the UK and develop and execute a shale exploration and appraisal program

Sites

Coal bed methane at Airth - Midland Valley, Scotland, Midland Valley Basin The Airth project (PEDL 133) covers 330 km2 in the Midland Valley in Scotland, approximately 50 kilometres northwest of Edinburgh near Stirling. It covers a large part of the Clackmannan coal field that was extensively mined in the 19th and 20th centuries.

Extensive exploration and appraisal work has been done to-date and Dart Energy has moved into early development via a small-scale pilot-to-power project during 2012, using gas produced from the Airth-12 well. This well has now been shut in, pending full field development. Full field development is currently underway, with gas supply targeted from late 2014.

Dart says it 'currently' has 'no plan to frack the coals at Airth'.

Project phase: Early development

Area: 330 km2

Contract award: 1 July 2004

Participants: CBM - Dart Energy 100%

Contract expiry: 30 June 2015

Contract type: Concession

Participants

CBM - Dart Energy 100%

Black Metal Shale – Dart 100%

Lothian (Broxburn) Shale – Dart 49%, BG 51%

Warnings of pollution if test site goes ahead

In March 2014 respected geologist Professor David Smythe warned in the Sunday Times of potentially serious environmental damage, including contamination of streams and rivers, if plans to drill for subterranean methane are given the green light in Scotland.

Partnerships

In October 2013 Dart formed a joint venture with GDF Suez to drill up to 14 wells in Lancashire and Wales in the UK exploring for both coal bed methane (CBM) — gas strapped in underground coal seams — and for shale gas. It was due to start in December 2013. GDF was accused of hypocrisy given that fracking is banned in France.

Subsidiary

GP Energy, a subsidiary of Dart Energy Europe, has a 17.5% stake in two exploration licences, PEDL 139 and 140, in central England, with France's Total (40%). Other interest holders are Egdon Resources (14.5%), IGas (14.5%) and eCorp Oil & Gas UK (13.5%). IGas will act as operator for the initial exploration programme, with Total taking operatorship once the exploration starts.

Lobbying and PR firms

• Vigo Communications, a new agency co-founded in summer 2013 by a senior member of agency M Communications
• DLA Piper

Affiliations

• Vitol - one of Dart's former chief executives was involved with Vitol

People

• Nick Davies -Chairman
• John McGoldrick - Chief Executive Officer of entire business
• Eytan Uliel - Chief Financial Officer

April 2013 restructure of board

• Nick Davies , non -executive Chairman
• Stephen Bizzell, Shaun Scott and Simon Poidevin non-executive directors
• Norrie Stanley to join Board as non-executive independent director – UK based, former senior BP executive, extensive UK / international energy / gas expertise

Former staff=

• Mark Lappin, European boss of Dart Energy and the public face of its plan to exploit underground gas in Scotland, resigned in July 2013, moving to take up a job with Centrica in Aberdeen Scotland, where he lives. Lapping first joined Dart Energy in April 2012 as Europe general manager, responsible for progressing the company's flagship development at Airth. Before that he spent 16 years with the US oil giant, ExxonMobil, in Aberdeen, Texas and Germany.
• Senior manager, Lynne Campbell

Contact details

Website: http://www.dartgas.com/

Twitter UK: @DartEnergyUK

External resources

• Mark Macaskill, Dart test site raises fears of pollution, The Sunday Times, 9 March 2014

• Dart Energy, Strategic & Corporate Restructure, April 2013