Dart Energy, an exploration and production company in the unconventional gas industry, announced that it has entered into an agreement to sell 100 percent of its wholly owned Singaporean subsidiary company, Dart Energy (FLG) Pte Ltd, to Hong Kong HuiHua Global Technology Ltd, a Hong Kong subsidiary of the Shenzhen-listed China Oil HBP Science & Technology Corporation Ltd.
Dart Energy (FLG) Pte Ltd is the holder of 50 percent of the issued share capital of Fortune Liulin Gas Ltd, a Hong Kong company which in turn holds a 50 percent interest in the Liulin Production Sharing Contract in China.
Consideration for the sale is approximately $20.8 million, cash.
Completion is subject to satisfaction of customary conditions precedent, including obtaining the approval of various Chinese government bodies, and is expected to occur within 2-3 months.
Commenting, John McGoldrick, Dart CEO said:
“In March 2013 Dart was restructured so as to focus the business on our extensive, high-prospect shale and CBM acreage in the United Kingdom. As part of the restructure various assets were identified as being non-core to the revised strategy, and we began processes in multiple countries that sought to sell, farm-out or exit these non-core assets. We are thus very pleased to have been able to reach today’s agreement, which will see us monetize our previous investment in China, providing us with cash which can be redeployed in support of our core business activities.
We continue to actively pursue monetization of other non-core assets in various international locations, and at the same time we continue discussions aimed at securing one or more appropriate farm-out arrangements”.
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