Dart Energy Completes Farm-Out Agreement with GDF

Australia-based Dart Energy completed the farm-out agreement with GDF Suez E&P and received $12 million in cash, reads a note released on Thursday. 

‘Planning is now well advanced for the first phase of the work program contemplated in the farm-out agreement, being the drilling of coal bed methane exploration wells. At the same time, the company has commenced planning and seismic work which will be necessary to the drilling of shale exploration wells in due course,’ reads the press release. 

The transaction was announced in October. GDF Suez said it would have invested up to $39 million for a 25% interest in 13 licences in Cheshire and the East Midlands owned by Dart Energy. The agreement includes a $12 million cash payment to Dart Energy and the funding of a joint unconventional exploration and appraisal program up to $27 million. 

On Tuesday, Dart Energy’s shareholders approved changes to the composition of the board, paving the way to a ‘review of the company’s strategy.’