Dart to Start Work on Commercializing Liuling CSG Project

Dart Energy has said it will start commercialisation work on Liuling coal seam gas project in the early part of next year.

Three wells have been drilled in the project by Fortune Liulin Gas (FLG) (Dart is a 50% shareholder) and the total field production from FLG horizontal wells now exceeds 500 Mscf/d.

Two new wells have been drilled and are expected to start in the very near future.

The 5 wells in aggregate are expected to provide sufficient production volumes to meet requirements of the existing Gas Sales Agreement (GSA), which is for up to 1.75 MMscf/d.

Initial gas sales from the  Liulin  field will be via a  Compressed Natural Gas plant (currently under construction;  owned and operated by Shaanxi-CUCBM, the off-taker of Liulin gas), which is under construction and expected to be ready for commissioning in the second half of 2012.