Australian coalseam gas company Dart Energy has unveiled plans for a restructuring, including a proposed listing of its international portfolio on the Singapore stock exchange by the end of the first quarter of 2012.
The move follows recent, unsolicited expressions of interest in the company's international assets and a detailed strategic review, Dart said in a statement Thursday.
As part of the review, Dart concluded it was trading at a material discount to both its Australian and international peers and that its international portfolio was not appropriately valued by shareholders.
In addition, the review indicated that Dart's Australian assets were well positioned to take advantage of increasing domestic gas prices and future industry consolidation linked to the LNG export market. Dart plans to explore the possible introduction of strategic partners at either an asset or corporate level for the company's Australian operations.
"The proposed changes are about unlocking value and providing greater see-through transparency on the value of both Dart's Australian assets and our international portfolio, which currently comprises around 80% of our currently budgeted expenditure over the next 18 months," said Dart Chairman Nick Davies. "Our extensive international portfolio is the envy of many and we want to ensure its full development through building a new international shareholder base and the possible introduction of strategic partners at a company or asset level. A separately listed international vehicle can help expedite this."
The assets to be listed in Singapore as Dart Energy International include coalseam gas holdings in China, India, Indonesia, Vietnam and Europe. Dart would retain a majority stake in the international vehicle, but the exact minority interest to be floated is still to be determined, due partly to ongoing discussions with potential strategic partners.
Dart was spun off in July 2010 from Australian coalseam gas producer Arrow Energy, which was acquired for A$3.4 billion ($3.6 billion) by global giants Shell and PetroChina to provide resources for their planned 8 million mt/year LNG project on Curtis Island in the eastern state of Queensland. Dart was formed to hold Arrow's 90% stake in its assets in China, India, Vietnam and Indonesia, along with several growth prospects in Australia.
Since its listing, Dart has expanded its international portfolio from seven tenements in four countries to 30 tenements in seven and launched an 18-month exploration, appraisal and development campaign across the holdings. It has also matured its resource and reserve position to 16.3 Tcf of gas-in-place, 7.5 Tcf of prospective resource, 100 Bcf of 3P reserves and 43 Bcf of 2P reserves.
Other milestones have included production of first gas from pilot testing at Sangatta West in Indonesia, approval of a production sharing contract at Dajing in China, a joint venture with Electrosteel at Parbatpur in India, the acquisition of the UK's Composite Energy, and the establishment of a shale gas footprint in Scotland and in Poland.
In Australia, Dart has accumulated a resource base close to major gas markets and existing and proposed infrastructure in the eastern state of New South Wales, which is becoming a focus for merger activity among local producers. The company plans to drill a number of core holes and appraisal wells in New South Wales in 2011 and 2012 and will focus on the commercialization and development of its resource base.
Dart is currently capitalized at A$476 million.
