September 3, 2010Dart Energy has advanced its plans to create a global coal bed methane (CBM) company by acquiring a strategic stake in Composite Energy, a leading European CBM operator.
Dart will initially acquire a 10 percent stake in Composite by subscription of US$7 million, and has an option to increase its stake to 20 percent prior to the end of January 2011 via subscription of an additional US$5 million.
All funds subscribed will be used to progress Composite’s CBM business in Europe.
This will include accessing a number of high value new licence opportunities, furthering Composite’s ongoing work program on its existing 17 CBM licences in the United Kingdom and Europe, and furthering the evaluation of shale gas potential in several of Composite’s licence areas.
Dart has the ability to capitalise on value created in Composite via an option to move to 100 percent ownership, exercisable prior to the end of June 2011, by acquiring the remaining 80 percent of the company for US$56 million.
In announcing the transaction, Dart Chief Executive Officer and Managing Director Simon Potter says the investment in Composite is a significant development.
“Composite is an established European CBM business with an existing portfolio of assets, an in-place management team, a strong pipeline of opportunities and a significant NSAI certified resource position,” Potter says.
“The investment therefore provides Dart with a compelling entry platform into the European CBM and shale gas industry, albeit in a staged way that does not detract focus from our existing current activities,” he says.
Dart Energy is an Australian publically listed company focused on the development of coal bed methane throughout eastern Australia and Asia.
Its registered office is located in Brisbane, while its head office is in Singapore
