Dart Energy Limited to Acquire Composite Energy Limited

Dart Energy Limited has announced that it has agreed to acquire the 90% of coal-bed methane developer Composite Energy Limited that it does not already own. Total consideration is for approximately US$46.7 million.

Established in 2004 , Composite is a privately held company owned by its founders and management, and strategic and financial investors, including Royal Bank of Scotland and BG Group.

Composite currently holds interests in 15 UK CBM Licences and 3 Poland CBM Licenses, and has a pipeline of licence opportunities across Continental Europe that it expects to secure in the near-term.

Dart's Chief Executive Officer, Mr. Simon Potter, in announcing the transaction, said:

"The move to acquire 100% of Composite is a significant milestone for Dart. Since becoming a 10% shareholder in Composite, we have had an opportunity to undertake a detailed review of Composite's existing assets and in particular the prospects for early commercialization of the PEDL133 licence in Scotland. We have also been able to work alongside Composite to help them secure two high potential new licences in Poland and to further progress a number of other opportunities in their pipeline across continental Europe.

By moving to full ownership of Composite today, we are able to fully avail ourselves of the entry platform into the European CBM and shale gas industry that Composite represents by taking control of and full responsibility for the 2011 work programme.’

Potter stated that Dart’s focus would be to establish a basis for commercialization of CBM resources in the UK and Europe by improving both cost performance and reservoir delivery in progressing Composite's existing assets expeditiously to development, to build on that initial Composite platform so as to establish Dart as the CBM operator of scale in Europe and to further expand our shale gas exploitation competencies.

Source: Dart Energy