Finance Issues Put Dart Energy's Scotland CBM Quest on Hold
Dart Energy, which is hoping to development coal-bed methane resources in Scotland, has asked the Australian Stock Exchange for a suspension in the trading of its shares pending the release of an announcement regarding a “proposed capital raising.”
The Singapore-based firm has been unable to fully access a HSBC loan facility, due to delays in securing planning approval for its flagship Airth project near Falkirk.
Dart plans to invest £100 million in its operations, drilling 22 wells at 14 sites to move to full gas production, after undertaking more than nine years of exploration at the site.
The company has a £330 million contract with Scottish and Southern Energy to turn gas extracted from the Airth site into electricity, but work has been unable to proceed given delays to securing planning permission from Falkirk and Stirling council. The local authorities have failed to make a decision on the project, pushing back production by around a year.
Opponents to the project have claimed that the development would risk significant environment damage to the area.
The company recently received clearance from The Scottish Environment Protection Agency (SEPA) following allegations that methane and carbon dioxide was potentially leaking from pipework associated with the extraction of coal-bed methane at its operations near to Canonbie in South West Scotland.
Dart’s proposals have been put to the Scottish Government public inquiry with the company commenting said it expects ministers to take up to a year to rule on the proposals.
The unconventional gas developer has been divesting assets, including in China and India, to focus its efforts on Scottish coal-bed methane and shale gas prospects in England.
CEO John McGoldrick had said deal between Centrica and Cuadrilla could trigger new enthusiasm for UK shale gas, with positive repercussion for operators trying to find partners for new developments.
Dart has a package of eleven licences in the Western Bowland shale, holding 100% working interest in all of these licences. The estimated net gas-in-place is in the range of 30–60 Tcf. The company has also a strong position in the Eastern Bowland shale, where it is the largest single licence holder with 15 licences.