Dart Energy Bets on UK Projects as it Undergoes Restructuring
Dart Energy is dramatically curtailing operations including the reduction of staffing by 70%, as a result of recent decisions in Australia by the NSW and Federal Governments relating to coal seam gas development that have materially impacted on the short term prospects for its Australian assets.
In response to current market conditions, a reassessment of the priority projects and shareholder feedback, the coal seam gas specialist has instituted a restructuring, cost cutting and refocusing program.
Dart will focus its forward strategy on maximizing the value of its CSG projects in Scotland and on extensive shale assets in England specifically the Bowland basin, which has to date seen encouraging exploration and appraisal results
Dart believes that it UK assets offer the best prospects for near term value creation, especially given the clear UK Government policy promoting the development of that country’s unconventional gas resources
The company hopes to take those assets into cash flow on a 12–18 month view, while reducing the cash draw from the balance of the portfolio.
The planned public offering of Dart International has been cancelled.
Dart will continue to assess it operations in Indonesia with the near term focus on securing an off take partner and establishing commerciality of the South Sumatra assets. In China, the focus will be on securing regulatory approvals for its shale gas PSC, and finalizing the associated farmout to fund that exploration program.
Other operations in India, continental Europe and certain assets in Indonesia and China will be scaled back substantially with a view to partnering, farming out, selling or exiting in a manner that best maximizes return.