Australia-listed Dart Energy Limited reported that the transfer of Petroleum Exploration Licence 445 (PEL 445) in New South Wales (NSW), Australia from Arrow Energy Pty Limited (Arrow) has been completed.
PEL 445 is a sizeable license, covering 2,732 square miles (7,076 square kilometers) of the Clarence-Moreton Basin in northern NSW. Exploration to date has shown the coals of the Walloon Coal Measures contain good to excellent gas composition and are well saturated. It is believed that the Walloon Coal Measures contains a significant volume of Gas-in-place (GIP) within the PEL 445 area. In addition, potential secondary targets have been identified in the sandstones of the Bundamba Group and the deeper Ipswich Coal Measures.
As part of the PEL 445 license renewal process, Dart intends to relinquish non-prospective and certain coastal areas in due course.
The addition of PEL 445 will increase Dart’s total NSW portfolio to eight licenses, with a total area of approximately 10,039 square miles (26,000 square kilometers), representing one of the largest coal seam gas (CSG) and unconventional gas acreage holdings in the State. The transfer of PEL 445 to Dart was agreed to approximately 10 months ago, and completion has been pending regulatory approval since. The transaction to acquire PEL 445 also included the settlement of various outstanding liabilities between Dart and Arrow relating to the demerger of Dart from Arrow in 2010. The total consideration was $1.78 million (AUD 1.9 million) of which circa $187,000 (AUD 200,000) related to PEL 445.
PEL 445 has minimal commitments, and thus fits with Dart’s current strategy in NSW, being to retain a sizeable acreage position at low cost, pending a more supportive policy regime for CSG development in that State. In this regard, Dart notes and welcomes recent statements indicating renewed support from the Australian Federal Government for the development of the CSG industry in New South Wales, and the recognition that the local CSG industry will play a key role in the addressing the pending regional gas shortage.
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