Dart Receives Extention in Vietnam

Coalbed methane (CBM) player Dart Energy has been granted an extension of the exploration period for the Hanoi Trough Block, onshore Vietnam.

Dart said it had been granted an additional 12 months for the exploration period, which was due to expire on 31 October last year, until 1 November.

Dart completed the first phase of an initial eight well exploration campaign in 2009 and results from two of the wells indicated increasing gas volumes with depth.

In January last year the company began the second phase of its exploration campaign which focused on deepening a number of the wells drilled the previous year. Dart said results indicated potential for commercial CBM production at depths greater than 1000 metres.

As a result it applied for an extension of the production sharing contract exploration period with the Vietnam government to allow it to carry out more technical studies and possible pilot testing on the block.

If it is satisfied with the outcome of the studies at the end of the extension period Dart could choose to proceed to a phase two pilot program to be drilled and production tested over an additional 21 month period.

The company holds a 30 year PSC in relation to the Hanoi Trough Block which covers an area of about 2601 square kilometres in the Song Hong basin in northern Vietnam, near Hanoi.

Dart is operator of the block and holds a 70% stake, with state-run PetroVietnam holding the remaining 30% interest.

Source: Dart Energy