Dart Announces Significant Resource Assessment
Dart Energy Limited has announced an independent assessment of a significant resource for its Australian portfolio of coal bed methane licences.
Following the completion of the acquisition of Apollo Gas Limited in January 2011, Dart Energy engaged MBA Petroleum Consultants Pty Ltd (MBA) to undertake an assessment of the coal bed methane resource within six of the seven licences in the portfolio, being PELs 456, 459, 460, 461, 463, 464 in New South Wales, Australia.
Dart has previously reported contingent resource in PEL458 that was independently assessed by Netherland, Sewell and Associates, Inc (NSAI). Both MBA and NSAI have undertaken their assessments using the Society of Petroleum Engineers' Petroleum Resources Management System.
The aggregate resource position for Dart's NSW portfolio as at 31 March 2011 is summarised as follows:
Dart's NSW CBM Total Resource - Summary as at 31st March 2011(1)
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Category As at 31/3/11
(Net, Tcf)
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Best Estimate Gas-in-Place 32.5
Prospective Resource 12.3
1C Contingent Resource 0.3
2C Contingent Resource 0.5
3C Contingent Resource 1.5
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(1) PEL458 was previously independently assessed by NSAI; PEL 456 was previously independently assessed by MBA; no prior assessment of balance of portfolio.
Simon Potter, Dart Energy Chief Executive Officer, said: "The outcome of the MBA evaluation endorses our view of the resource potential in NSW and underpins our strategy of accessing a significant resource adjacent to markets with unfulfilled demand; in this case the need for gas-fired power generation capacity in the State. Thus our acquisition of Apollo Gas has added over 12 Tcf of net prospective resource to the Dart portfolio. Our drilling programme over 2011 is designed to further delineate this resource which will then lead rapidly to commercialisation of gas in those licences most proximate to market".
Earlier this week Dart announced that it will commence exploration of the Dajing block in China after receiving approval for a natural gas Production Sharing Contract (PSC) contract between Dart and China National Petroleum Corporation (CNPC) from the Ministry of Commerce of the People’s Republic of China. The effective date of the PSC is 1 April, 2011.
The Dajing block currently has 6.59 Tcf of gross Original Gas In Place (OGIP) and 3.48 Tcf of gross prospective resource, as certified by Netherland, Sewell & Associates. The block covers an area of 3,969km2 and is supported by strong infrastructure, including the west-east pipeline owned and operated by PetroChina.
On 3 November 2010 CNPC and Dart Energy signed a 30 year Production Sharing Contract (PSC) in relation to exploring the Dajing block for natural gas, giving Dart Energy a 49% interest and operatorship of the block. The first year's work program involves the drilling of 14 exploration wells.
Source: Dart Energy