Shale gas exploration merger pre-empts UK licensing round

• 10 years ago (2014-05-12)
• Junior Isles

Europe 1089

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Australian shale gas explorer Dart Energy has been acquired by its UK based oil and gas firm IGas in an all-share deal valuing the company at £117 million ($198.35 million).

The deal creates Britain's largest shale gas explorer only weeks before the launch of a major UK onshore licensing round for shale gas exploration.

Dart shareholders will take a 30.5 per cent stake in the enlarged IGas company; final board and regulator approvals are still required and expected to be completed by September.

"The transaction further strengthens our position financially, operationally and also significantly increases our licensed acreage as we seek to unlock the untapped energy resource that exists in Britain," IGas chief executive Andrew Austin said.

The takeover gives IGas access to over 1 million acres of licensed land in Britain, including major shale gas sites, under which it can drill for oil and gas.

IGas already has UK shale gas farm-in agreements in place with French energy giant Total, and Dart had a similar deal with GDF Suez, giving major oil and gas company backing to the new IGas entity.

IGas said it planned to sell all of Dart’s non-UK assets, including licence interests in Australia, Germany, Belgium, Indonesia and India, and also cancel Dart’s May 12 listing on London Alternative Investment Market (AIM).