IGas Clinches Deal to Acquire Dart Energy

IGas Energy moves closer to the acquisition of Dart Energy, with the intention to create a company able to capitalize on the renewed interest for shale gas in the United Kingdom.

‘This transaction puts IGas at the heart of unlocking Britain’s energy potential. It demonstrates our commitment to, and confidence in, the UK onshore oil and gas sector. This is a British success story establishing IGas as a key contributor to UK energy mix and security. The transaction further strengthens our position financially, operationally and also significantly increases our licenced acreage as we seek to unlock the untapped energy resource that exists in Britain,’ IGas' CEO Andrew Austin commented in the note released on Friday.

The two companies reached agreement on the terms of a recommended acquisition by IGas of Dart. The estimated value of the total share capital of Dart is A$211.5 million.

‘The combination of IGas and Dart will create a market leading onshore UK oil and gas company with the largest area in the UK under licence of over 1 million net acres including major UK shale basins,’ reads the note.

Dart also cancelled its planned listing on the AIM Market of the London Stock Exchange. 

“We are delighted with today’s announcement, as we believe that it heralds a new era for the UK gas industry. Success in the oil and gas business comes from scale, and the combination of Dart and IGas achieves that scale, creating a clear market leader with a vastly greater depth in terms of asset base, access to capital and operating capability, all of which will be critical to achieving long-term success,” Dart's CEO John McGoldrick concluded in the note. 

Dart shareholders will hold approximately 30.5% of the new company, which will try to take advantage of the imminent onshore licensing round.