Developing a Global Unconventional
Dart Energy International
Developing a Global Unconventional
Gas Portfolio
5th Annual CBM & Unconventional Gas Conference
Bali, 26 – 29 June 2012
John McGoldrick – Chief Executive Officer
28 June 2012
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This presentation has been prepared by Dart Energy International Pte Ltd (the "Company") solely for use in connection with the 5th Annual CBM &
Unconventional Gas Conference. By viewing all or part of this presentation, you agree to maintain confidentiality regarding the information disclosed in this
presentation, unless such information is otherwise publicly available. Any failure to comply with these restrictions may constitute a violation of applicable
securities laws.
This presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe
for any securities, nor should it or any part of it form the basis of, or be relied in any connection with, any contract or commitment whatsoever.
The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and
no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. None of
the Company, Dart Energy Limited or any of their respective affiliates, advisers or representatives accept any liability whatsoever (in negligence or otherwise)
for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in
connection with this presentation.
This presentation includes forward-looking statements. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect“, “plan”
and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those
regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and
objectives relating to the Company's business and services) are forward-looking statements. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different
IMPORTANT NOTICE.
2
risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different
from results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as at the
date of this presentation. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future
or likely performance of the Company. Past performance is not necessarily indicative of future performance. The forecast financial performance of the
Company is not guaranteed. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current views of the
Company on future events. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions, except as required by
law, to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Neither this presentation nor any copy or portion of it may be sent or taken, transmitted or distributed, directly or indirectly, into the United States, Japan,
Australia, Canada or any other jurisdiction which prohibits the same. The securities have not been, and will not be, registered under the U.S. Securities Act of
1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States or elsewhere, and the securities may not
be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act and applicable state or local securities laws. This presentation is not for distribution in, nor does it constitute an offer for sale of securities in
the United States. The Company does not intend to conduct a public offering of its securities in the United States.
This presentation may not be forwarded or distributed to any other person and may not be copied or reproduced in any manner. Failure to comply with this
directive may violate applicable laws.
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DART ENERGY INTERNATIONAL -
DEVELOPING GLOBAL UNCONVENTIONAL GAS.
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���� Office Locations:Stirling, ScotlandKrakow and Warsaw, Poland
���� Office Location: Beijing
EUROPE (CBM)
Area: c. 6,900 km2
OGIP (net): 13.8 Tcf
Prospective Resources (net): 0.4 Tcf
Contingent Resources (net): 4.7 Tcf (2C)
2P Reserves (net): 38 Bcf
3P Reserves (net): 119 Bcf
ASIA (CBM)
Area: c. 3,500 km2
OGIP (net): 4.1 Tcf
Prospective Resources (net): 2.0 Tcf
Contingent Resources (net): 0.2 Tcf (2C)
2P Reserves (net): 7 Bcf
3P Reserves (net): 21 Bcf
Dart International Shale
Area: c. 3,900 km2
# Assets: 172
OGIP (net): 76.0 Tcf1
Prospective Resources (net): 0.4 Tcf (Best estimate)
United Kingdom - 5 principal areas (32 Assets)
Belgium - 1 Asset (CBM JV)
Germany - 2 Assets4
Poland - 3 Assets and 2 Assets under option
China - 1 Asset
DART ENERGY INTERNATIONAL AT A GLANCE.
4
SUMMARY
Assets / projects CBM and Shale projects across 18 basins3
Over 10,400 km2
Resources /
Reserves (net)
OGIP: 17.8 Tcf (CBM); 76.0 Tcf (Shale)1
2C: 4.9 Tcf (CBM)
Reserves: 45 Bcf (2P - CBM); 140 Bcf (3P - CBM)
Business 8 countries; local / regional capabilities
150 staff; >50% former Arrow Energy
Commercial Options 2 GSAs in place; 1 MOU signed
Other monetisation opportunities being negotiated
All resources and reserves are on net basis and have been independently certified by NSAI (except Liulin, China which has been certified by MHA Petroleum Consultants)Notes: 1 Shale OGIP potential best estimates based on NSAI’s independent assessment (May 2012)2 17 assets in the portfolio are prospective for shale gas - 14 PEDLs in the U.K., 1 concession in Poland (Milejow) and 2 licences in Germany3 Comprise of 43 licenses, including 17 with shale potential. Excludes licenses under relinquishment4 Options for the 2 assets have been exercised and are pending completion
���� Office Location: Jakarta
Head Office - Singapore
���� Office Location: New Delhi
Indonesia - 3 Assets
India - 2 Assets and 2 CMM projects
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IDENTIFY AND ACCESS (1-4 years)
High quality prospects
Attractive gas markets
APPRAISE(2-5 years)
Diagnostic know-how
Execution capability
COMMERCIAL
PRODUCTION(>10 years)
Ability to market gas
quickly
RAPID RESOURCE MATURATION + RAPID COMMERCIALISATION
Su
cce
ss
act
ors
Life
-cyc
le
ph
ase
Str
ate
gy
STRATEGY: A SIMPLE MODEL.
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Attractive gas markets
Diversified resource base
Partner relationships
Execution capability
Disciplined resource
maturation
Less capital intensive
quickly
Accessible markets
Favourable margins in
target marketsSu
cce
ss
fact
ors
Da
rt p
rog
ress
to-d
ate
Large resource base in
attractive markets
Diversified portfolio
Established strong
relationships
Attractive pipeline
Large contingent
resources; Initial reserves
certified (independently)
5 projects near
development
Drilling across portfolio
Best-in-class team
2 GSAs in place
Early pilot-to-power
projects underway
Visibility on production
Other commercialisation
options being developedFor
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DART ENERGY INTERNATIONAL – COAL BED METHANE PORTFOLIO
250
300
350
400
450
500
PEDL 133
Liulin PSC
Electrosteel
Sangatta
West PSC
Muralim
PSC
6STRICTLY PRIVATE & CONFIDENTIALPage 6
0
50
100
150
200
250
0 100 200 300 400 500 600EXPLORATION CORE DRILLING &
TESTING
PILOT TESTING INITIAL
DEVELOPMENT
EARLY
PRODUCTION
West PSC
Tanjung
Enim PSC
PEDL 159
USCBPEDL
161 & 163
Satpura
Assam
East Midlands
Chester Basin
Staffordshire
Milejow
Chelm
OGIP
Prospective
2C
3P
2P
FULL
PRODUCTION
10,000 Bcf
8,000 Bcf
4,000 Bcf2,000 Bcf
1,000 Bcf500 Bcf250 Bcf100 BcfF
or p
erso
nal u
se o
nly
DART ENERGY INTERNATIONAL – SHALE GAS PORTFOLIO
150
200
250
Milejow
7STRICTLY PRIVATE & CONFIDENTIALPage 7
0
50
100
0 50 100 150 200 250EXPLORATION CORE DRILLING & TESTING PILOT TESTING INITIAL
DEVELOPMENT
PRODUCTION
Midland Valley
Gainsborough
Trough
(East Midlands)
Chester Basin
Saxon I West
& Saxon II
OGIP
Prospective
50,000 Bcf
30,000 Bcf
10,000 Bcf
2,000 Bcf
200 BcfFor
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KEY PROJECTS PROGRESSING TO MONETISATION.
Selected projects in each geography being progressed to production and
monetisation in next 12 – 18 months
United Kingdom
LiulinChina
SUMMARY
# Wells 35-45
SUMMARY
# Wells 30-35
Airth, PEDL 133
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Notes: All numbers are on gross basis. Dart Energy International’s working interests in these projects is as follows: PEDL133 100%; Coal Mine Methane (India) 30%;Tanjung Enim (Indonesia) 45%; Sangatta West (Indonesia) 24%; Liulin (China) 25%. Dart has a long term option to increase its working interest in Liulin project to 37.5%.
Coal Mine Methane
India
Tanjung Enim
Sangatta WestIndonesia
# Wells 35-45
Potential Field EUR 40-50Bcf
Contingent Resource (net): 594 Bcf (2C)
2P Reserves: 38 Bcf
3P Reserves: 72 Bcf
Based on c. 60km2 initial development area
SUMMARY
# Wells 20-25
Potential Field EUR 15-20 Bcf
Contingent Resource (net): 89 Bcf (2C)
Based on c. 6km2 drainage area
SUMMARY
# Wells 160-180
Potential Field EUR 150-200 Bcf
Contingent Resource (net): 256 Bcf (2C)
Based on c. 60km2 initial development area
SUMMARY
# Wells 110-130
Potential Field EUR 125-150 Bcf
Contingent Resource (net): 273 Bcf (2C)
3P Reserves: 38 Bcf
Based on c. 65km2 initial development area
# Wells 30-35
Potential Field EUR 30-40 Bcf
Contingent Resource (net): 88 Bcf (2C)
2P Reserves: 29 Bcf
3P Reserves: 49 Bcf
Based on c. 30km2 initial development area
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LEVERAGED TO THE STRONG MACRO GAS STORY.
Gas is increasingly becoming the primary fuel globally;
its share in the energy mix is expected to catch up with oil by 20401,2
1
Technically recoverable unconventional gas resources
are larger than conventional natural gas resources1
2
9
Dart Energy International is a leading global unconventional
gas company with a large international asset base, managed by an
experienced team with a demonstrated track record of success
3
Notes:1 DataFusion Associates2 ExxonMobil report: 2012 The Outlook for Energy: A View to 2040
Near term value creation potential through focus on achieving
production and revenues at core projects
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OBSERVATIONS & LEARNINGS.
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CBM and Shale transformed the energy landscape in North America and Australia
Europe and Asia have significant unconventional gas resources
The long-term sector dynamics are excellent
“UNCONVENTIONALS” – A TRANSFORMATIVE, GLOBAL ENERGY SOURCE.
China2,519 Tcf1
Europe3,478 Tcf1,2
North America2,670 Tcf1
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• Advanced CBM development in Queensland; early stage exploration/appraisal outside QLD (including NSW)
• 70% of Queensland’s gas supplied by CBM
• 4th largest LNG exporter currently;
• Expected to be the largest in <10 years once projects in development come online
Australia Case Study• Most advanced in CBM and shale gas development
• Over 20-year history• 23% of US natural gas in 2010
accounted for by shale gas4
North America Case Study
11
India344 Tcf1
Indonesia1,440 Tcf1
Notes:1 Unconventional gas (Shale and CBM) resource potential (Source: DataFusion Associates)2 Including Eurasia 3 Australia’s CBM resources ranged between 492-984 Tcf. The midpoint (738 Tcf) was used in this calculation4 EIA Annual Energy Outlook 2012 (Early Release) http://www.eia.gov/forecasts/aeo/er/pdf/0383er(2012).pdf
Australia1,128 Tcf1,3
Dart Energy International Active Markets
Size of Unconventional Gas Resource Potential1
Legend:
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ASIAN MARKETS ARE “GAS HUNGRY” - STRONG SECTOR DYNAMICS.
+DART ENERGY
MARKETS
-15.6Tcf -5.3Tcf -4.3Tcf -2.4Tcf
~850Tcf ~2,500Tcf ~350Tcf ~1,450Tcf
US$8.0 - US$11.0/mcf US$6.0 - US$8.0/mcf US$5.0 - US$7.5/mcf US$5.0 - US$8.0/ mcf
7.0
12.3
2.87.1
21.4
5.81.9
4.3
Long-term Supply
Deficits1
Large Resource
Potential2
Attractive Gas
Prices
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Exploration / appraisal Some production; early
stage exploration /
appraisal
Early stage exploration /
appraisal; some (small)
production
Early stage exploration /
appraisal
• Domestic gas production in
decline
• Security of supply concerns
(reliance on Russian and
Norway imports)
• Large CBM and shale gas
resources
• Stringent “green”
regulations likely to
increase gas demand
• Largest gas market in Asia3
• 2nd largest energy
consumer globally3
• Largest unconventional gas
resource globally3
• Govt’s intention to fast
track development of
unconventional gas as part
of 12th 5-Year Plan
• 3rd largest gas market in
Asia3
• 4th largest energy
consumer globally3
• 5th largest LNG importer
globally3
• Large CBM resources
• Shale gas on the agenda
• Largest holder of proven
natural gas reserves in
Asia-Pacific3
• 5th largest CBM reserves
globally3
• 2nd largest LNG exporter
globally in 20103
• Govt seeking to fast track
CBM/shale development
Demand Supply
Notes:1 Projected demand less domestic supply in 2020; DataFusion Associates projections2 Includes CBM and shale gas resources (where available). Source: DataFusion Associates3 Based on BP Statistical Review of World Energy June 2011
Prices
Favourable Market
Considerations
Unconventional Gas
in Early Stages
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BUT, IN ASIA THERE ARE SPECIFIC CHALLENGES TO BE ADDRESSED.
NORTH AMERICA / AUSTRALIA
(QLD)ASIA PACIFIC (EX QLD) EUROPE
���� ���� ����
���� Challenging Challenging
In Australia, needed to be
developed���� ����
GAS
“IN THE GROUND”
LAND / SURFACE ACCESS
INFRASTRUCTURE
SUCCESS FACTORSNORTH AMERICA /
AUSTRALIAASIA U.K. / EUROPE
13
Access to high prices (eg: LNG
export) spurred market���� ����
����Complex PSC structures
Hydrocarbon specific licences����
Clear regime
Clear regime, but
implementation can be
challenging
Clear regime
• Market dynamics supported
rapid resource development
• Ease of land access + regulatory
clarity led to rapid development
/ “unconventional gas boom”
• Land access is challenging
• Bureaucratic administration
• Key issues & concerns often need
to be addressed / resolved at
local village / community level
• Land access is challenging
• Relatively “efficient” bureaucracy
• Generally supportive regulatory /
fiscal environment
FISCAL REGIME /
REGULATORY SYSTEM
MARKET
DEMAND + PRICING
ENVIRONMENTAL
MANAGEMENT
KEY OBSERVATIONS
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Typical Australia “CSG to LNG” Dart - International (& NSW)
Market
Features
Resource
+
Limited Market
Resource
+
Extensive Accessible Market
Business
Model
Implication
Prove up a large reserve base
to justify large capital decisions for
infrastructure development
Monetise small reserve base quickly
Capital decisions are smaller
VALUE, NOT SIZE OF RESOURCE, MATTERS IN EUROPE AND ASIA.
14
Implication infrastructure development
Business
Outcomes
Large upfront capital spend
Major infrastructure development
Longer lead to production & revenue
Small volumes are not commercial
Lower upfront capital needs
Less infrastructure development
Shorter lead to production & revenue
“Small” volumes are commercial, and
valuable given higher prices
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CASE STUDY: AIRTH PROJECT, PEDL 133, U.K.
INDUSTRY DYNAMICS ALLOW RAPID COMMERCIALISATION.
ACTIVITY / PROJECT STATUS PATH TO COMMERCIALISATION
February 2011 Dart acquired PEDL 133 (via Composite)No reserves; exploration wells previously
drilled
May / June 2011
Dart redesigned project and well design; leads to reserve
certification (first for CBM in the U.K.); significant contingent
resource
38 Bcf 2P reserves1
72 Bcf 3P reserves1
597 Bcf 2C resource1
July 2011First U.K. GSA with SSE Energy (FTSE 100) for the certified 2P
reservesExpected first gas sales 2H 2013
15
Note 1: As of 31 December 2011 based on NSAI certification
reserves
December 2011 /
January 2012
First pilot well; target to commercialise pilot gas via pilot-to-
power in 2H 2012
Proof of concept; first revenues expected
in 2H 2012 from pilot-to-power
March 2012Extended GSA with SSE for incremental reserves; potentially in
place until 2023
Secured long-term sales revenues at price
derived from European spot prices
3Q 2012 Final investment decision -
2H 2012 Development drilling expected to commence Commercial development
2H 2013 Expected first gas sales Full field development
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RESPONSIBLE ENVIRONMENTAL MANAGEMENT.
LAND USE
� Wells occupy large surface area?
� Land cannot be used for other uses?
� Unsightly and disrupts wildlife habitats?
1
CONCERNS INDUSTRY FACTS
� “Nuisance” / drilling period typically <30 days
� Horizontal drilling requires up to 10X less space
� A well in production requires very little space
allowing land use for other purposes
� Site restoration / remediation stringently
regulated
� Drilling “additives” affect groundwater aquifers?
� Water produced is not fit for other uses?
2� ~80% initial water recovered to potable
standards(1); remaining treated for safe disposal
16STRICTLY PRIVATE & CONFIDENTIAL
WATER
� Water produced is not fit for other uses?
� Water produced affects the soil?
standards ; remaining treated for safe disposal
� Shale formations are typically several thousand
meters below aquifers
� No clear examples of ground water contamination
since 1982(2)
� Multiple safeguards: steel casings, cementing, etc
FRACCING
� New technology?
� Chemicals used are angerous?
� Gas can migrate to surface?
� Causes earthquakes?
3� Safe “fraccing” dates back to 1950s, over tens of
thousands of wells globally
� >98% water; < 2% “additives” (common in
household products)
� Used for shale; limited use in CBM
� Strictly regulated
Notes1. Marcellus Shale – Water Treatment Options Worth Considering, www.ventureengr.com2.. Department of Energy & Climate Change (U.K.) Report “Shale gas, NW England earthquakes and UK regulation”, 8 May 2012
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INDUSTRY EVOLUTION – TRENDS TO LOOK OUT FOR IN EUROPE & ASIA.
Building Acreage
Building ReservesEarly Commercialisation
Building Projects to “Full Scale” Development
BuildingMargins
BuildingScale
Industry
ParticipantsMany smaller players Consolidation O&G Majors
Some trends that can be picked up looking at CBM / Shale gas industry evolution in North America and Australia
Life Cycle
Stage
1 2 3 4 5 6 7 8 9 10 11 12 13Years
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Industry
Investment
Technology
Innovation
Commercial
Options
Industry
Efficiency
Vertical Fracs Surface-to-inseam / Horizontal Fracs Next Generation (UCG, CTL); Multi-fracs
Higher CostsLower Per Well Production Rates
Lower CostsHigher Per Well Production Rates
Exploration Field Developments Major LNG / Downstream Projects
Single PipelineMultiple Pipelines
Power Options LNG / CNG / PNGFor
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2010: acquired by
Exxon for US$41bn
2010: 2nd largest US
producer; CNOOC
US$2bn+ strategic
investor
2010: A$3.5bn
acquisition by Shell /
CNPC
NORTH AMERICA
SHALE
AUSTRALIA
CBM
INTERNATIONAL
UNCONVENTIONALS
2009: A$5.2bn
acquisition by BG
Group
2009: A$5bn CBM-
LNG JV with
INDUSTRY PRESENTS A SUBSTANTIAL VALUE CREATION OPPORTUNITY.
2010: acquired by
Royal Dutch Shell
18
2000’s
LNG JV with
ConocoPhillipsRoyal Dutch Shell
for US$4.7bn
2000’s
Europe Asia Global
2012 ����
Source: Reuters
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Dart Energy International
Singapore (Head Office)
152 Beach Road,
#19-01/04 The Gateway East
Singapore 189721
Tel: +65 6508 9840
Fax: +65 6294 6904
CONTACTS:
Country Offices
Stirling, Scotland, United Kingdom
Laurel Hill Business Park
Polmaise Road, Stirling
FK7 9JQ
Tel: +44 333 800 2000
Fax: +44 1786 447868
New Delhi, India
804 - 805, Global Business Park
Tower B, 8th Floor MG Road
Gurgaon - 122002 (India)
Jakarta, Indonesia
Wisma Anugraha, (Petrosea Office), 1st Floor
JI. Taman Kemang, No.32B
Kemang Jakarta 12730, Indonesia
Tel: +62 21 719 8117
Fax: +62 21 718 2844
Beijing, China
Tower 4 of Beijing International Centre
Suite 706, 7/F, No.38, East 3rd Ring Road North
Chaoyang District 100022 Beijing, P.R.China
CONTACT INFORMATION.
19
CONTACTS:
John McGoldrick, Chief Executive [email protected]
Eytan Uliel, Chief Commercial [email protected]
Nathan Rayner, Chief Operating [email protected]
Martin Cooper, Chief Financial [email protected]
Gurgaon - 122002 (India)
Tel: +91 124 4990500
Fax: +91 124 4990501
Chaoyang District 100022 Beijing, P.R.China
Tel: +86 10 8587 0177
Fax: +86 10 8587 0167
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ADDITIONAL MATERIALS.
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APPENDIX 1APPENDIX 1
DART ENERGY INTERNATIONAL:
BUSINESS OVERVIEW
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UNIQUE.
Offers global exposure to the sector
Early mover with established “on the ground” presence in key markets
Risk mitigated through portfolio approach
Attractive gas markets; supply constrained with robust demand fundamentals
Diversified global portfolio across multiple basins in multiple countries
Sizeable CBM / shale resources and reserves base globally
LARGE
UNCONVENTIONAL
“PURE PLAY”.
Strong project pipeline in Europe and Asia with near term revenue potential
DART ENERGY INTERNATIONAL – BUSINESS HIGHLIGHTS.
22
Operatorship to control pace, capital expenditure and costs
Disciplined resource maturation and monetisation approachSTRATEGY.
Experienced board and management with a demonstrated track record
Extensive relationships with key stakeholders globally
Team with know-how and execution expertise across project life-cycle
EXPERTISE.
COMMERCIALITY.Strong project pipeline in Europe and Asia with near term revenue potential
Two GSAs + 1 MoU; multiple other opportunities being progressed
Large-scale infrastructure not generally a constraint on commercialisation
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UPCOMING OPERATIONAL MILESTONES - DEMONSTRATING THE MODEL.
PEDL 133, Scotland Connection to electricity grid; first pilot-to-power revenues – June 2012
Project sanction / DECC approval – November / December 2012
Commence production well drilling / project development – November 2012
First GSA deliveries – 2H 2013
Liulin, China Pilot wells production data – Q3 2012
Approval to begin construction on the gathering system – H2 2012
Submission of full field Overall Development Plan – by end 2012
First pilot gas sales under GSA – 1H 2013
Sangatta West,Indonesia
Re-commissioning of production wells – Q3 2012
Installation of power generator – Q4 2012
23
Indonesia Installation of power generator – Q4 2012
First pilot-to-power revenue from Sangatta West – Q4 2012
Full field development application and approvals – during 2013
Tanjung Enim, Indonesia
Installation of facilities and commencement of pilot production – Q3 2012
Installation of power generator – Q4 2012
First pilot-to-power revenue from Tanjung Enim – Q1 2013
Gas sales agreement for Tanjung Enim / Muralim – during 2013
CMM, India Drilling degassing wells for Tata Steel; earning revenue for services - Q3 2012
Commencement of degassing drilling at Electrosteel – Q1 2013
First revenues – 1H 2013
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60
80
100
200
300
400
Bcf
p.a
.
US$
'mEstimated Revenue Range Estimated Production Range
TRANSITIONING INTO A PRODUCTION COMPANY: 5-YEAR TARGETS.
Base projects offer near term revenue and proof of model; building to materiality 2015
onwards
24
0
20
40
0
100
2013 2014 2015 2016 2017
Bcf
p.a
.
US$
'm
2013 3P Reserves Target: 250 – 300 Bcf
EBITDA Margin:60% - 70%
Portfolio offers significant growth potential and underpins 5-year TargetFor
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DART CBM ASSETS IN A MARKET CONTEXT.
PORTFOLIO IS SIZEABLE AND COMPARABLE TO OTHER INTERNATIONAL PEERS
Market Cap US$140m US$1,092m US$62m US$575m US$165m US$57m
Assets/Acreage: 10,400 km2 7,567 km2 4,458 km2 877 km2 1,455 km2 7,910 km2
Locations:
England, Scotland,
Wales, Poland,
Belgium, Germany, China China India U.K.
France,
Belgium, Italy,
Australia
25
Belgium, Germany,
China, Indonesia, IndiaAustralia
OGIP (net) 17.9 Tcf 25.6 Tcf 8.6 Tcf 3.0 Tcf 9.1 Tcf -
Prospective (net) 2.4Tcf - - - - 5.2 Tcf
2C Resource 4.9 Tcf 30 Bcf 320 Bcf 132 Bcf 1.8 Tcf 5.9 Tcf
3P Reserves 141 Bcf 2,513 Bcf 114 Bcf 188 Bcf 10 Bcf 250 Bcf
2P Reserves 38 Bcf 307 Bcf 380 Bcf 90 Bcf 9 Bcf 92 Bcf
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DART SHALE ASSETS IN A MARKET CONTEXT.
PORTFOLIO IS SIZEABLE AND COMPARABLE TO OTHER EUROPEAN SHALE PLAYERS
# Shale Assets /
Acreage (net):
17 Assets
3,724km2
11 Assets
3,130km2 (Poland only)*
4 Assets**
1,800km2
16 Assets
11,700km2
Midland Valley Basin, U.K.
Cheshire Basin, U.K.
Gainsborough Trough, U.K. Baltic Basin, Poland Baltic Basin, PolandBaltic Basin, Poland
Cantabrian Basin, Spain
26
## Dart’s shale gas-in-place potential is based on independent assessment by NSAI.* 3Legs acreage includes Poland only; additional c. 2,800km2 acreage in Germany; OGIP estimate per NSAI assessment in the AIM Admission document; no updates since**Realm asset position as of the date of announcement of acquisition by San Leon. Realm has since been awarded certain concessions in Spain*** Estimated based on 100bcf/square mile estimate set out in San Leon-Realm merger circular, (page D-15)
Locations:Gainsborough Trough, U.K.
Lublin Basin, Poland
Rhine-Westphalia, Germany
Options - prospective
basins in Poland (Baltic)
Baltic Basin, Poland
Krakow, Poland
South-west Germany
Baltic Basin, Poland
Podlasie Basin, Poland
Lower Saxony, Germany
Cantabrian Basin, Spain
Thuringia, Saxony, North
Rhine-Westphalia, Germany
Resources (net): OGIP: 76.0 Tcf (net)##
0.4 Tcf Prospective
OGIP: 50.9 Tcf (net)* OGIP: 65 Tcf (est.)*** Not Disclosed
Market Cap - c. US$75mUS$142m (acquired by San
Leon)
c. US$140m (includes
producing assets in US)
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APPENDIX 2APPENDIX 2
DART ENERGY INTERNATIONAL:
KEY CBM PROJECTS
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AIRTH PROJECT, PEDL 133 – SCOTLAND, UNITED KINGDOM.
Work to date
Executing exploration program
Drilling of pilot wells
Reserve certification
Installation of pilot gas-to-power facilities
Completion full field development planning and FEED study
Monetisation
First gas sales from pilot-to-power in mid-2012
GSA with SSE from mid 2013 – 8 years period, up to 11 Bcf per
28
GSA with SSE from mid 2013 – 8 years period, up to 11 Bcf per
annum at spot prices (c. $10/Mcf)
Migration of 600 Bcf 2C to 3P allows scope for material growth
Future work program
Drill production wells
Installation of production facilities
Area(km2)
3C(Tcf)
2C(Tcf)
3P(Bcf)
2P(Bcf)
367 1.2 0.6 72 38
OGIP is best estimate. All resources and reserves are net to Dart.
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LIULIN PROJECT – SHAANXI, CHINA.
Work to date
Production testing from 4 multi-seam multilateral
pilot wells with a fifth due online in June
Initial flow rates encouraging - field at >500 Mcsf/d
Pre development engineering for Overall
Development Plan (ODP)
Monetisation
Third party GSA in place for pilot gas sales
Future work program
29
Future work program
Submission of Overall Development Plan for
regulatory approval
Development of surface infrastructure facilities to
allow delivery into GSA
Area(km2)
3C(Bcf)
2C(Bcf)
3P(Bcf)
2P(Bcf)
183 33 22 12 7
OGIP is best estimate. All resources and reserves are net to Dart.
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PILOT-TO-POWER PROJECTS, INDONESIA.
Work to date
Sangatta West, East Kalimantan
− Drilling of exploration program
− Pilot production from 4 wells
− Installation of pilot production facilities
Tanjung Enim, South Sumatra
− 2 core wells + 3 well pilot drilling completed
Monetisation
30
First gas sales from pilot-to-power in 2012
Future work program
Delivery of commercial gas flow
Installation of power generation facilities
Area(km2)
OGIP(Tcf)
3C(Bcf)
2C(Bcf)
3P(Bcf)
Sangatta West 1,168 0.3 100 62 9
Tanjung Enim 308 0.4 154 109 -
OGIP is best estimate. All resources and reserves are net to Dart.
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CMM PROJECTS – JHARKAND COAL FIELDS, INDIA.
Work to date
2 core wells completed
Assessing CMM degassing potential
Monetisation
Potential off-take by domestic CNG operators
Potential partner off-take
31
Future work program
Drill 6-8 degassing wells late 2012/2013
Accessing additional degassing projects
Area(km2)
OGIP(Bcf)
3C(Bcf)
2C(Bcf)
9 53 48 26
OGIP is best estimate. All resources and reserves are net to Dart.
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Asset Country Location Interest OperatorGross area
(km2)
Net resource and reserves (BCF)
OGIP1 Prospective1 2C 3C 2P 3P
CBM
Muralim PSC Central Sumatra 50% Company 983 1,357 682 - - - -
Assam Block Assam 60% Company 113 706 450 - - - -
Satpura Block Madhya Pradesh 80% Company 714 1,150 729 - - - -
PEDLs 161, 163 Midlands Valley 100% Company 412 140 - 41 185 - -
East Midlands Project2 East Midlands 100% Company 707 3,318 14 997 3,381 - -
Wrexham / Chester Project3 Wrexham/Chester 100% Company 400 2,060 - 1,099 2,327 - -
REST OF CBM PORTFOLIO.
Large resource base in the remainder of CBM portfolio; offers significant upside
4Tcf 2C Contingent Resources; 2.3 Tcf of prospective resources
Work underway across portfolio to mature resources to reserves and seek early monetisation
opportunities
32
Wrexham / Chester Project3 Wrexham/Chester 100% Company 400 2,060 - 1,099 2,327 - -
Wales Project4 Wales 100% Company 442 1,750 9 903 1,618 - -
PEDL 159 Canobie 100% Company 295 363 43 123 134 - 47
Staffordshire Project5 Staffordshire 100% Company 325 1,466 - 685 1,042 - -
York Project6 York 100% Company 645 741 - 221 507 - -
Chelm Lublin Basin 100% Company 760 2,034 228 - - - -
USCB Upper Silesia Basin 100% Company 323 526 108 - - - -
Milejow Lublin Basin 100% Company 372 265 36 - - - -
LRM (Joint venture)7 Campine Basin 80% Company - - - - - - -
Saxon I West and Saxon II8 North Rhine-Westphalia 100% Company 1,890 - - - - - -
Total (CBM) 8,381 15,876 2,299 4,069 9,194 - 47
1 OGIP and Prospective Resources are best estimates as per NSAI and MHA reports
2 East Midland project includes PEDLs 173, 174, 176, 178, 179, 200, 207 and 210
3 Wrexham / Chester project includes PEDLs 185, 188 and 189
4 Wales project includes EXLs 273, 284, and PEDLs 147, 186, 187 and 211
5 Staffordshire project includes AL010, and PEDLs 195, 196 and 198
6 York project includes PEDLs 012, 139, 140, 146, and PL162-1 (Company has a 60% CBM interest in PEDLs 139 and 140)
7 The Company entered into a joint venture agreement and our joint venture partner anticipates applying for a permit to explore for
unconventional gas in the Campine basin in Belgium. The Company will be the operator of any unconventional gas exploration
license that our partner obtains for the purposes of our joint venture
8 Options for these 2 assets have been exercised and are pending completion
Sources: All Resources and Reserves reported are based on NSAI’s report except for China which is based on MHA Petroleum Consultants’ report . Total may not add up due to rounding differences
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APPENDIX 3APPENDIX 3
DART ENERGY INTERNATIONAL:
SHALE BUSINESS OVERVIEW
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DART SHALE OVERVIEW.
Dart Shale
Area: c. 3,700 km2
# Assets: 171
OGIP (net): 76.0 Tcf2
Prospective Resources (net): 0.4 Tcf (Best estimate)
Dart Energy Shale Assets
Dart Energy Office Location
United Kingdom – 14 Assets
Germany – 2 Assets3
Poland – 1 Asset and 1 Asset under option
Overview of shale portfolio:
34
Notes: 1 17 assets in portfolio are prospective for shale gas - 14 PEDLs in the U.K., 1 concession in Poland (Milejow) and 2 licences in Germany2 Shale OGIP best estimates based on NSAI’s independent assessment3 Options for the 2 assets in Germany have been exercised and are pending completion
Overview of shale portfolio:
− Spread across 5 shale prospective basins (three in the U.K., one in Poland and one in Germany)
− Located in markets with established gas distribution networks
− 76.0 Tcf2 OGIP independently assessed
− Shale gas drilling activity in proximal acreages
Dart strategy on shale gas:
− focus on progressing existing portfolio of our shale assets in Europe
− seek early-stage entry opportunities to attractive shale gas prospects in Europe
− expand geographies by participation in early-stage low-cost shale gas opportunities (e.g. in China)
− leverage on existing infrastructure and personnel resources to grow specific shale gas capabilities
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DART SHALE – U.K. SHALE ASSETS.
U.K. – Cheshire BasinPreese Hall 1• Vertical cored well drilled in 2010• TD at approx 2,700m• Gas shows over thick Carboniferous Bowland &
Worston Shale Package• Completed 5 of 12 planned fracs – suspended
after two minor tremors
Grange Hill 1• Vertical cored well drilled 2H 2010• TD at 3,300m with Carboniferous shales from
1,200m
Becconshall 1• Vertical cored well drilled 2011• TD at 3,100m with top shale at 2,450m
“Gas-fired power already accounts for 44 per cent of the UK's energy generation and, as
coal and the existing nuclear fleet are phased out, this contribution is only likely to
grow. DECC recently confirmed that emissions limits on power plants will be held
at 450 grams of carbon per kilowatt hour. Gas power plants already meet this requirement, so the ruling effectively
enshrines gas as the baseload fuel of choice for the next three decades”1
- Investors Chronicle, 25 April 2012
35
Dart Licences
Ince Marshes 1• Vertical cored well drilled Q4 2011• Planned TD of 1,450m• Encountered >300m of gas bearing Carboniferous
Bowland Shale
“IGas said it now believed the volume of “gas in place” was near 10 trillion cubic feet (tcf). If even 10pc of that were recoverable, it could equate to about a quarter of the UK’s annual
natural gas usage.”2
- The Telegraph, 3 April 2012
Sources:1 http://www.investorschronicle.co.uk/2012/04/25/shares/profit-from-another-dash-to-gas-2MHYiAqply8F4kqlLN7eZN/article.html2 http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9181942/IGas-doubles-estimates-of-UK-shale-gas-reserves-to-10-trillion-cubic-feet.html
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DART SHALE – POLISH SHALE ASSETS.
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Lewino IG-1• Vertical cored well drilled Q2/3 2011• TD at 3,600m with gas shows over 1,000m of Lower
Silurian, Ordovician and Cambrian Section• Mainly methane with minor C2-8
Legowo LE-1• Vertical core well drilled Q2/3 2011• TD at 3,243m• 251m of Lower Silurian and Upper Cambrian Shales
Rogity 1• Vertical cored well drilled Q3/4 2011• TD at 2,788m with gas shows over 500m of Lower
Silurian, Ordovician and Cambrian• Strongest shows in Lower Silurian• Mainly methane with minor C2-8
Berejow 1 – PKN Orlen• Spudded Q1 2012
Lebien LE-1 & 2H• LE-1 vertical cored well• 2H horizontal well with 13 frac
stages• Stablised flows of 450-
500mscf/day
Lubocino 1• Drilled Q1 11; TD at 3,050m in middle Cambrian• Gas shows throughout Lower Silurian• Two frac zones in vertical well• Max flow of 288,000m3/day (10mmscf/day)• Stable flow of 58,000-86,000m3/day• TOC = <0.5 – 5%
Szymkowo 1 - Dart 20% via GP Option• Due to be spudded March 2012• Talisman carry & operator
Siennica 1 & Kruppe 1 – ExxonMobil
“I confirm that there is a lot of natural gas in Poland - it is worth investing in its
exploration. The joint gas reserves from conventional deposits and the estimated gas reserves from unconventional deposits, that is from shales, make us the third country in
terms of extractable gas reserves in Europe”1
- Piotr Wozniak, Chief National Geologist & Deputy Minister of Environment, Poland
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Dart Licenses
Dart Option Asset
Syczyn 1 – PKN Orlen• Drilled to TD of 3,000m in Q4 2011• Horizontal and frac planned for 2012
Siennica 1 & Kruppe 1 – ExxonMobil• Well drilled 2011; Long term well test
Chevron• Spudded a well in 1Q 2012
“Poland is the leader of shale-gas exploration among European countries and also the
most advanced country in terms of monitoring the environmental aspects of
geological work related to shales”1
- Piotr Wozniak, Chief National Geologist & Deputy Minister of Environment, Poland
Source:1 http://www.epmag.com/Exploration-Reservoir-Evaluation/Poland-Moves-High-Gear-Shale-Gas-Drilling_98966
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APPENDIX 4APPENDIX 4
DART ENERGY INTERNATIONAL:
REGIONAL ASSET OVERVIEW
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ASSET OVERVIEW - CBM.
Asset Country Location Interest OperatorGross area
(km2)
Net resource and reserves (BCF)
OGIP1 Prospective1 2C 3C 2P 3P
CBM
Sangatta West PSC East Kalimantan 24% Company / Ephindo 1,168 250 44 62 100 - 9
Tanjung Enim PSC South Sumatra 45% Company 308 393 88 109 154 - -
Muralim PSC Central Sumatra 50% Company 983 1,357 682 - - - -
Assam Block Assam 60% Company 113 706 450 - - - -
Satpura Block Madhya Pradesh 80% Company 714 1,150 729 - - - -
Electrosteel JV (Coal Mine Methane project) Jharkhand 30% Company 9 53 - 26 48 - -
Liulin PSC2 Shanxi Province 25% Company / Fortune Oil 183 143 20 22 33 7 12
PEDL 133 Midlands Valley 100% Company 367 1,093 - 597 1,247 38 72
PEDLs 161, 163 Midlands Valley 100% Company 412 140 - 41 185 - -
East Midlands Project3 East Midlands 100% Company 707 3,318 14 997 3,381 - -
Wrexham / Chester Project4 Wrexham/Chester 100% Company 400 2,060 - 1,099 2,327 - -
Wales Project5 Wales 100% Company 442 1,750 9 903 1,618 - -
38
PEDL 159 Canobie 100% Company 295 363 43 123 134 - 47
Staffordshire Project6 Staffordshire 100% Company 325 1,466 - 685 1,042 - -
York Project7 York 100% Company 645 741 - 221 507 - -
Chelm Lublin Basin 100% Company 760 2,034 228 - - - -
USCB Upper Silesia Basin 100% Company 323 526 108 - - - -
Milejow Lublin Basin 100% Company 372 265 36 - - - -
LRM (Joint venture)8 Campine Basin 80% Company - - - - - - -
Saxon I West and Saxon II9 North Rhine-Westphalia 100% Company 1,890 - - - - - -
Total (CBM) 10,416 17,808 2,451 4,885 10,776 45 140
1 OGIP and Prospective Resources are best estimates as per NSAI and MHA reports
2 The Company has a long term option to increase its working interest in Liulin PSC to 37.5%
3 East Midland project includes PEDLs 173, 174, 176, 178, 179, 200, 207 and 210
4 Wrexham / Chester project includes PEDLs 185, 188 and 189
5 Wales project includes EXLs 273, 284, and PEDLs 147, 186, 187 and 211
6 Staffordshire project includes AL010, and PEDLs 195, 196 and 198
7 York project includes PEDLs 012, 139, 140, 146, and PL162-1 (Company has a 60% CBM interest in PEDLs 139 and 140)
8 The Company entered into a joint venture agreement and our joint venture partner anticipates applying for a permit to explore for
unconventional gas in the Campine basin in Belgium. The Company will be the operator of any unconventional gas exploration
license that our partner obtains for the purposes of our joint venture
9 Options for these 2 assets have been exercised and are pending completion
Sources: All Resources and Reserves reported are based on NSAI’s report except for China which is based on MHA Petroleum Consultants’ report . Total may not add up due to rounding differences
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ASSET OVERVIEW - SHALE.
Asset Country Location Interest OperatorGross area
(km2)
Net resource (BCF)
OGIP1 Prospective1
Shale
PEDL 133 (Black Metal Shale) Midlands Valley 100% Company367
795 115
PEDL 133 (Lothian (Broxburn) Shale)2 Midlands Valley 49% Company 1,753 255
PEDLs 147, 186, 187 Cheshire 100% Company 260 19,277 -
PEDLs 185, 188, 189 Wrexham / Chester 100% Company 400 11,273 -
PEDLs 200, 207, 210 East Midlands 100% Company 258 19,036 -
EXL 288 York 100% Company 51 4,016 -
PEDL 012 York 100% Company 86 6,426 -
PEDL 139 York 16.5% eCORP 100 1,723 -
PEDL 140 York 16.5% eCORP 141 1,259 -
Milejow Lublin Basin 100% Company 372 9,485 -
Saxon I West and Saxon II9 North Rhine-Westphalia 100% Company 1,890 969 -
Total (Shale) 3,9254 76,012 370
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Total (Shale) 3,925 76,012 370
1 OGIP and Prospective Resources are best estimates as per NSAI report
2 BG holds 51% working interest in the Lothian (Broxburn) Shale
3 Options for these 2 assets have been exercised and are pending completion
4 Shale gas acreage included as part of CBM acreage
Sources: All Resources and Reserves reported are based on NSAI’s report. Total may not add up due to rounding differences
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DART EUROPE: SUMMARY.
���� Office Locations:Stirling, ScotlandKrakow and Warsaw, Poland
United Kingdom - 5 principal areas (32 Assets)
Belgium - 1 Asset (CBM JV)
Germany - 2 Assets1
Poland - 3 Assets and 2 Assets under option
Zbigniew Zuk
Country Manager, Poland
Mark Lappin
General Manager, Europe
Asset Location Resource Type Dart Interest Operator Area (km2) Project Status
PEDL 133 Midlands Valley, Scotland CBM 100% Dart 367 Early Dev
Black Metal Shale 100% Exploration
40
Note:
1 Options for the 2 assets have been exercised and are pending completion
Black Metal Shale 100% Exploration
Lothian (Broxburn) Shale 49% Exploration
Other shale (13 licences) Various, U.K. Shale 100% Dart 1,100 Exploration
PEDL 159 Canonbie, U.K. CBM 100% Dart 295 Appraisal
PEDLs 161, 163 Midlands Valley, U.K. CBM 100% Dart 412 Exploration
East Midlands Project East Midlands, U.K. CBM 100% Dart 708 Exploration
Wrexham / Chester Project Wrexham/Chester, U.K. CBM 100% Dart 400 Exploration
Wales Project Wales, U.K. CBM 100% Dart 442 Exploration
Staffordshire Project Staffordshire, U.K. CBM 100% Dart 325 Exploration
York Project York, U.K. CBM 100% Dart 645 Exploration
LRM (Joint venture) Campine Basin, Belgium CBM 80% Dart - Exploration
Chelm Lublin Basin, Poland CBM 100% Dart 760 Exploration
USCB Upper Silesia Basin, Poland CBM 100% Dart 323 Exploration
Milejow Lublin Basin, Poland CBM 100% Dart 372 Exploration
Shale 100% Dart Exploration
Saxon I West and Saxon II North Rhine-Westphalia, Germany CBM/Shale 100% Dart 1,890 Exploration
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U.K.
Overview
32 licences in the U.K. following the acquisition of Composite Energy
Limited (“Composite”) and GP Energy Ltd (“Greenpark”)
In March 2012, Dart restructured the BG Group arrangements and
acquired BG’s 50% interest in 14 PEDLs held originally by Composite
# Licences /
Resource Position
32 licences with an acreage of 3,556km2
CBM Resources:
− OGIP: 10.9 Tcf
− 2C: 4.7 Tcf
CBM Reserves:
− 3P: 119 Bcf
− 2P: 38 Bcf
Shale Resources: OGIP: 2.5 Tcf
Immediate Focus
Integrating the new licence areas following Greenpark acquisition
Development of PEDL 133 (Airth, Scotland)
41
Immediate Focus Development of PEDL 133 (Airth, Scotland)
Focussed on executing exploration and appraisal work programs
2012-2013
Work Program
Development drilling and installation of production facilities, connect to
UK pipeline network on Airth project
Exploration drilling program across U.K. portfolio
Commercialisation
Strategy
Airth: GSA with SSE; expected commencement in 2H2013; Small scale
power generation planning underway ahead of GSA sales
GSA under negotiation with BG for other U.K. licences
Business Development
Pipeline
Other CBM and shale gas opportunities
Commercialisation options
Work to-date
Resource and reserves certification across portfolio
Appraisal / pilot testing on Airth project
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EUROPE.
Overview
100% working interest in 5 licences (3 in Poland and exercised options for 2
in Germany)
80% interest a CBM joint venture with NV Mijnen in Belgium, to jointly
explore and extract CBM and shale gas in Campine Basin, Belgium
Operator in all its European assets
# Licences /
Resource Position
5 licences with an acreage of 3,345km2
CBM Resources:
− OGIP: 2.8 Tcf
− Prospective: 0.4 Tcf
Shale Resources: OGIP (Milejow only) : 9.5Tcf
Immediate focusPilot program at USCB (Upper Silesia Basin, Poland)
Initial exploration at Milejow/Chelm (Lublin Basin, Poland)
42
Work to-date
USCB: geological and geophysical analysis; 1 exploration well drilled
Milejow – obtained 40 km2 seismic data
2012-2013
work program
Pilot program at USCB
Exploration at Milejow / Chelm
Business Development
Pipeline
CBM and shale gas opportunities under evaluation:
− 1 Shale and 1 CMM degassing asset under option in Poland
− 1 CBM asset under option in Spain
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�
���� Office Location: New Delhi
���� Office Location: Beijing
Head Office - Singapore
China - 1 Asset
India - 2 Assets and 2 CMM projects�
DART ASIA: SUMMARY.
Unggul Setyatmoko
Country Manager, Indonesia
Eric Fung
Country Manager, China
Sudhansu Adhikari
Country Manager, India
43
Asset Location Dart Interest Operator Area (km2) Project Status
Sangatta West PSC East Kalimantan, Indonesia 24% Dart & Ephindo 1,301
Exploration and
Appraisal
Tanjung Enim PSC South Sumatra, Indonesia 45% Dart 308 Exploration
Muralim PSC Central Sumatra, Indonesia 50% Dart 983 Exploration
Assam Block Assam, India 60% Dart 113 Exploration
Satpura Block Madhya Pradesh, India 80% Dart 714 Exploration
Electrosteel Joint Venture1 Parbatpur, India 30% Dart 9 Development
Liulin PSC Shanxi Province, China 25% Dart & Fortune Oil 183 Appraisal
Note:
1 Dart has an economic right to a share of gas sales revenue from the degassing of Electrosteel's coal mining lease area
���� Office Location: Jakarta
Indonesia - 3 Assets
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CHINA.
Overview
25% working interest in the Liulin CBM project in Shanxi province. Fortune
Oil Plc has a 25% working interest and China United Coalbed Methane
(CUCBM) owns 50% working interest
Joint operatorship with Fortune Oil
# Licences /
Resource Position
1 licence with an acreage of 183km2
CBM Resources:
− OGIP: 143 Bcf
− 2C: 22 Bcf
CBM Reserves:
− 3P: 12 Bcf
− 2P: 7 Bcf
Immediate FocusPrepare the Liulin project for early stage gas sales
Strategic licence adds
44
Strategic licence adds
Work to-date
Production testing from multiple pilot wells, pre-development engineering
studies, planning for Overall Development Program
2012-2013
work program
Geological and engineering studies required for development permit and
transition to undertake full-field development
Drilling production wells and deployment of surface infrastructure to
support production operations
Commercialisation
Strategy
GSA in place; expected first gas sales in 1H 2013
Business Development
Pipeline
Commercialisation of incremental gas from Liulin project
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INDIA.
Overview
80% working interest in Satpura CBM Block, Madhya Pradesh
60% working interest in Assam CBM Block, Assam
30% working interest in a CMM joint venture with Electrosteel
Provides coal mine degassing service to Tata Steel
Operator of all of its Indian projects
# Licences /
Resource Position
2 licences and 2 CMM projects with an acreage of 836km2
CBM Resources:
− OGIP: 1.9 Tcf
− Prospective: 1,179 Bcf
− 2C: 26 Bcf
Immediate focus
Exploration and appraisal across Satpura and Assam CBM Blocks
Electrosteel CMM project development
Tata Power degassing services
45
Work to-date
Completed environmental clearances for exploration drilling campaign on
both Assam and Satpura CBM Blocks
Satpura CBM Block – completed geological and environmental studies,
secured mining lease and exploration program comprising 15 coreholes
underway
Electrosteel CMM – drilled 2 core wells
2012-2013
work program
Exploration program across Satpura and Assam CBM blocks
Production well drilling on Electrosteel CMM project
Tata Power degassing service – drill up to 3 degassing wells
Business Development
Pipeline
Farm-in discussions underway to four CBM Blocks
CMM opportunities in discussion
Seek other CBM and shale gas opportunities
Entered into gas sales term sheet with CNG operator for our Electrosteel
CMM project
Evaluation of other commercialisation options
Commercialisation
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INDONESIA.
Overview
Operator and owns 24% working interest in Sangatta West PSC, East
Kalimantan
Operator and owns 45% working interest Tanjung Enim PSC, South
Sumatra
Operator and owns 50% working interest Muralim PSC, South Sumatra
# Licences /
Resource Position
3 licences with an acreage of 2,592km2
CBM Resources:
− OGIP: 2.0 Tcf
− 2C: 171 Bcf
CBM Reserves:
− 3P: 9 Bcf
Immediate focus
Completing the pilot program at Tanjung Enim PSC and exploration
program at Muralim PSC
Early pilot-to-power development of the Sangatta West PSC and Tanjung
Enim PSC
46
Enim PSC
Work to-date
Sangatta West – drilled 3 core wells and 4 exploratory wells
Tanjung Enim – drilled 2 core holes and 2 pilot wells drillied; third pilot well
currently being drilled
Muralim – Geological & geophysical work for core and pilot program
Design and early development planning for pilot-to-power projects
2012-2013
work program
Exploration and pilot drilling in Muralim and Tanjung Enim
Pilot and development drilling in Sangatta West
Pilot-to-power projects in Sangatta West and Tanjung Enim
Commercialisation
Strategy
Pilot-to-power planning for both Sangatta West and Tanjung
Enim underway
In the long run, export of gas through Bontang LNG terminal which
currently operates below capacity
Business Development
Pipeline
Discussions underway for 3 CBM assets in Kalimantan
Seek other CBM and Shale gas opportunities
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APPENDIX 5
DART ENERGY INTERNATIONAL:DART ENERGY INTERNATIONAL:
BOARD, EXECUTIVE AND KEY MANAGEMENT
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Nicholas Davies, Non-Exec Chairman
More than 30 years of experience in the
upstream development of the oil and gas
industry
Experience includes positions as President,
South East Asia, of Atlantic Richfield Company ,
President, Asia Pacific Gas and Power of British
Petroleum and CEO of Arrow Energy Ltd.
Shaun Edward Scott, Non-Exec Director
More than 25 years of experience in the upstream
and downstream projects, M&A and project
finance in the energy sector
Experience includes positions as CCO, CFO and CEO
of Arrow Energy Ltd.
Sanjiv Misra, Independent Director
More than 25 years of experience in the
investment banking and financial services industry
Raymond Lim Siang Keat, Independent Director
Over 24 years experience in public and private
sector; currently Board member of the Government
BOARD OF DIRECTORS.
48
investment banking and financial services industry
Experience includes positions as COO for the Asia
Pacific Investment Banking Division of Goldman
Sachs, held various positions at Salomon Brothers
(now Citigroup) and Head of Asia Pacific
Corporation Bank
sector; currently Board member of the Government
of Singapore Investment Corporation Private
Limited
Held various positions including as Chief Economist
at ABN AMRO Asia Securities, Singapore and
various ministerial positions in the Government of
Singapore
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John McGoldrick, CEO
More than 32 years experience in oil and gas
Held executive management roles in Enterprise
Energy Ireland Ltd, Enterprise Oil Gulf of Mexico
Inc., Falcon Bay Energy Llc. and Caza Oil & Gas
Inc.
Nathan Rayner, COO
Over 14 years experience in oil and gas
Held technical and operation manager roles in
Addax Petroleum Ltd and Arrow Energy Ltd.
Eytan Uliel, CCO
More than 15 years experience in executive
management, corporate finance and legal
practice
Martin Cooper, CFO
More than 25 years in accounting and finance
Held finance executive roles in Interregnum Plc,
SciGen Ltd and Dart Energy Limited
EXECUTIVE MANAGEMENT TEAM.
49
practice
Held executive management roles in Carnegie
Wylie & Company, and in Babcock & Brown as
Head of Asia – Corporate and Structured
Finance
SciGen Ltd and Dart Energy Limited
Toby Hewitt, General Counsel
More than 15 years experience in energy and
resources in multiple jurisdictions
Held senior roles in international private legal
practice and in-house, most recently at Santos
Ltd and Herbert Smith LLP.
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IN-COUNTRY TEAM LEADERS.
Unngul Setyatmoko
Country Manager, Indonesia
20 years experience
Held leadership roles in ARCO and BP in
multiple aspects of gas sales and Bontang
and Tangguh LNG operations and marketing
Eric Fung
Country Manager, China
24 years experience
Deep experience in gas and power,
Mark Lappin
General Manager, Europe
29 years experience
Technical and management roles at
ConocoPhillips and ExxonMobil
Subsurface background including European
unconventional gas
Zbigniew Zuk
Country Manager, Poland
25 years experience
Downstream expert with significant
50
Sudhansu Adhikari
Country Manager, India
28 years experience
Senior geologist for Geological Survey of
India and Chief geologist for Reliance
Played instrumental role in development of
Sohagpur CBM basin
Deep experience in gas and power,
including Dapeng LNG, China’s first LNG
terminal
Downstream expert with significant
refining, operations, logistics and network
experience
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TECHNICAL TEAM LEADERS.
Peter Roles
Chief Technical Officer
Over 30 years experience
Previously held asset and project management roles at CH4, Santos, AGL, Central Queensland Natural Gas and CSR
Petroleum
Jeff Aldrich
Head of Exploration
Over 31 years experience
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Ross Hendrie
Head of Petroleum Engineering
Over 20 years experience
Previously held technical and project management roles within Shell
Over 31 years experience
Previously Executive V.P. of Exploration for Greenpark Energy, Chief Geologist for PetroSA and Forest Oil
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APPENDIX 6APPENDIX 6
DART ENERGY INTERNATIONAL:
GAS MARKET OVERVIEW
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DART ASIA: GAS MARKETS OVERVIEW.
Dart Asia’s Assets Market Industry DynamicsNatural gas proven reserves: 2.8 Tcm (99 Tcf)CBM resources: 37 Tcm (1,306 Tcf)Technically recoverable CBM resources: 11 Tcm (388 Tcf)CBM reserves: 273 Bcm (9,637 Bcf)Technically recoverable shale resources: 25 Tcm (882 Tcf)
Largest gas market in Asia and 2nd largest globallyBelieved to have the largest shale gas resources globallyGovernment intention to fast track shale gas development
Natural gas proven reserves: 3.1 Tcm (109 Tcf)CBM resources: 14.5 Tcm (453 Tcf)
5th largest CBM reserves globallyForeign companies can bid for 100% stake in CBM blocks
Ch
ina
Ind
on
esia
53
in CBM blocksDomestic gas supply shortfall due to existing LNG exports to Singapore and MalaysiaGovernment policy plans to reduce LNG export and shift production to meet domestic gas demand
Natural gas proven reserves: 1.5 Tcm (53 Tcf)CBM resources: 8.5 Tcm (300 Tcf)Technically recoverable CBM resources: 1.7 Tcm (60 Tcf)
3rd largest gas market in Asia4th largest energy consumer globallyIndia’s gas transmission capacity is approximately 11,900km and has a capacity of 103 BcmRegulated gas pricing structureGovernment looking to fast track development of CBM to mitigate declining oil and gas production
Ind
on
esia
Ind
ia
Source: DataFusion Associates
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Dart Europe’s Assets Market Industry Dynamics
Natural gas proven reserves: 256 Bcm (9,037 Bcf)CBM resources: 2 Tcm (70 Tcf)
Natural gas is a key part of U.K.’s energy mix, generating almost 50% of electricityNorth Sea conventional gas production rapidly decliningSupply shortfall being met by piped natural gas from Norway and Netherlands, and LNG importEstablished gas distribution network and Gas Network Code for pricing gas; expanding LNG terminal capacityCBM is expected to increase U.K.’s recoverable gas resource
DART EUROPE: GAS MARKETS OVERVIEW.U
.K.
54
Natural gas proven reserves: 4.8 Tcm (165 Tcf)1
CBM resources: N.A.Russia has been the primary supplier of to Europe (exceeding Norway, the U.K. and Netherlands)Domestic supply of gas has declined since the peak in 2004Share of gas in energy mix expected to increase from 26% (2010) to 30% (2025)Established pipeline infrastructure to transport gas across Europe and expanding LNG terminal capacityImported gas usually priced to oil-linked formulas resulting in high gas pricesCBM exploration and development is still at infancy stage across Europe
Eu
rop
e
Source: DataFusion Associates
Note:
1 Sourced from BP Statistical Review of World Energy (June 2011), adjusted to exclude identifiable Eurasian countries
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APPENDIX 7:APPENDIX 7:
DART ENERGY INTERNATIONAL:
GUIDANCE MATERIALS
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4 Bcf
6 Bcf
8 Bcf
10 Bcf
12 Bcf
14 Bcf
FULL SCALE DEVELOPMENT & PRODUCTION
AN INDICATIVE “50BCF PROJECT” TIMELINE (PEDL133)
Dart acquired PEDL 133
(part of Composite
Energy acquisition)
Near term development
potential– no reserves at
that time (exploration
wells drilled)
Commencement
of development
drilling
Gas Sales Agreement
with SSE Energy (FTSE
100) for certified 2P
resources; GSA
extended in March
2012 for incremental
volumes
EARLY MONETISATION
56
Bcf
2 Bcf
Dart redesigned project
/ well design;
Reserves certified (1st
for CBM in U.K.) - 2P:
38 Bcf; 3P 72 Bcf (and
significant contingent
resource (0.6 Tcf)
Gas Sales under
existing GSA
commencing 2H 2013
(for up to 11 Bcf p.a.);
8-year GSA term
Potential incremental gas
sales from expanded
development (c. 600 Bcf
2C contingent resource)
First pilot well drilling;
target to commercialise
gas from pilot wells via
small scale power
generation (from 2H 2012)
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“A TYPICAL 50BCF PROJECT” CASE STUDY
ILLUSTRATIVE PROJECT SCHEDULE AND ECONOMICS.
Year
Parameter1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Early Monetisation – Pilot Sales
Full Field Development and Commercialisation
# Wells - Exploration 8
# Wells – Pilot 4 8
# Wells - Production 12 12 12 12 12 12
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# Wells - Production 12 12 12 12 12 12
Production (Bcf) (1) 0.2 0.9 2.1 3.7 5.1 6.4 7.5 8.6 9.1 8.2 7.4 6.6 6.0 5.4
CumulativeProduction (Bcf)
0.2 1.1 3.3 7.0 12.1 18.5 26.0 34.6 43.7 51.9 59.3 65.9 71.9 77.3
Revenue(2) – US$m 1.0 7.0 16.0 28.0 38.0 48.0 57.0 64.0 68.0 61.0 55.0 50.0 45.0 40.0
Cumulative Revenue – US$m
1.0 8.0 24.0 52.0 90.0 138.0 195.0 259.0 327.0 388.0 443.0 493.0 538.0 578.0
Costs(3) – US$m 8.0 6.0 13.0 21.0 24.0 26.0 28.0 30.0 31.0 14.0 12.0 11.0 10.0 9.0 8.0
Cash (pre Govt. take) – US$m
(8.0) (5.0) (6.0) (5.0) 4.0 12.0 20.0 27.0 33.0 54.0 49.0 44.0 40.0 36.0 32.0
Cumulative Cash (pre Govt. take) –US$m
(8.0) (13.0) (19.0) (24.0) (20.0) (8.0) 12.0 39.0 72.0 126.0 175.0 219.0 259.0 295.0 327.0
Note:1. Production based on production profile with Estimated Ultimate Recovery per well of c. 1.3 Bcf2. Revenue based on assumed gas price of US$7.50/ mcf3. Cost assumptions include well + infrastructure capex of $1.5m/well; Opex $1.5/mcf
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KEY DATA / ASSUMPTIONS – GENERAL.
Europe China Indonesia India
Gas Price –US$/mcf
8.00 – 11.00 6.50 – 8.00 5.50 – 7.50 5.00 – 7.50
Capex – US$/mcf 3.75 – 4.75 2.50 – 3.00 1.25 – 1.50 1.25 – 1.50
Opex – US$/mcf 2.00 – 2.50 1.50 – 2.00 1.25 – 1.50 1.25 – 1.50
Govt. Take –US$/mcf
0.75 – 1.50 1.00 – 1.50 2.00 – 2.50 1.50 – 2.00
Net Cash –
58
Net Cash –US$/mcf
1.50 – 3.50 1.50 – 2.50 1.00 – 2.00 1.00 – 2.50
Fiscal Regime
Supplementary Charge Small Field Allowance
(“SFA”)
RoyaltyValue Added Tax
Cost recoveryProfit split
First Tranche Petroleum (“FTP”)
Cost recoveryProfit split
RoyaltyProduction Level Payments (“PLP”)
Near Term Developments
PEDL 133 LiulinSangatta WestTanjung Enim
CMM
Longer Term Prospects
PEDL 133 growth (600 Bcf 2C)
PEDL 159 (123 Bcf 2C)Staffordshire (685 Bcf 2C)
Other CBM / ShaleMuralim (685 Bcf Prosp)
Other CBMAssam (450 Bcf Prosp)Satpura (729 Bcf Prosp)
Note: All numbers are on gross basis and are based on Dart’s internal estimates in a conceptual development scenario. The number of wells in an actual development scenario may be different should the project progress to development. Actual outcomes may significantly vary from the estimates set out above depending upon the appraisal and initial development program currently being undertaken or to be undertaken.
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KEY DATA / ASSUMPTIONS: NEAR TERM PILOT COMMERCIALISATION.
PEDL 133
Scotland
LIULIN
China
SANGATTA W
Indonesia
TANJ. ENIMIndonesia
CMMIndia
Pilot Phase
Drilling Start Commenced Commenced Commenced Commenced2H 2012 / 1Q
2013
First Gas 2H 2012 1H 2012 2H 2012 3Q 2012 2Q 2013
Pilot Commercialisation
Pilot-to-power Pilot GSA Pilot-to-power Pilot-to-power CNG offtake
Pilot Sales 1H 2012 2H 2013 1H 2013 4Q 2012 2Q 2013
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Pilot Sales Commence
1H 2012 2H 2013 1H 2013 4Q 2012 2Q 2013
Capex estimated to first pilot sales
US$5.0m US$2.5m US$1.5m US$2.5m US$2.0m
# Wells for Pilotproject
3 - 4 4 – 6 2 – 3 4 - 6 6-8
Estimated Pilot Sales Volume
1-2 Bcf 2-3 Bcf 1-2 Bcf 1-2 Bcf 1-2 Bcf
Pilot Sales Gas Price
US$10.0/mcf US$7.0/mcf US$7.90/mcf US$7.50/mcf US$5.0 mcf
Note: All numbers are on gross basis and are based on Dart’s internal estimates in a conceptual development scenario. The number of wells in an actual development scenario may be different should the project progress to development. Actual outcomes may significantly vary from the estimates set out above depending upon the appraisal and initial development program currently being undertaken or to be undertaken.
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KEY DATA / ASSUMPTIONS: POTENTIAL COMMERCIAL DEVELOPMENTS.
PEDL 133
Scotland
LIULIN
China
SANGATTA W
Indonesia
TANJ. ENIMIndonesia
CMMIndia
First Phase Full Field
Development
Drilling Start 3Q 2012 Commenced 2Q 2013 2Q 2012 1Q 2013
# Wells 35-45 30-35 110-130 160-180 35-45
Well Type Multi-lateral Multi-lateral Vertical Vertical Vertical
EUR/Well (bcf) 1.00 – 1.10 1.40 – 1.60 1.25 – 1.50 1.00 – 1.20 1.00 – 1.25
Initial Field Production 0.3-1.0 Bcf/yr 0.8-1.2 Bcf/yr 1.0-1.5 Bcf/yr 1.0-1.2 Bcf/yr 0.4-0.6 Bcf/yr
Max Field Production 6-8 Bcf/yr 5-6 Bcf/yr 10-12 Bcf/yr 8-10 Bcf/yr 5-6 Bcf/yr
60
Note: All numbers are on gross basis and are based on Dart’s internal estimates in a conceptual development scenario. The number of wells in an actual development scenario may be different should the project progress to development. Actual outcomes may significantly vary from the estimates set out above depending upon the appraisal and initial development program currently being undertaken or to be undertaken.
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Ramp-Up Period 3-4 yrs 3-4 yrs 4-5 yrs 3-4 yrs 2-3 yrs
Sales PeriodFrom 3Q 2013
15-20 yearsFrom 1H 201415-20 years
From 1H 201415-20 years
From 2H 201415-20 years
From 2H 201310-15 years
Gas Price Range (US$/mcf)
9.0 – 10.0 6.5 – 7.5 6.0 – 7.5 6.0 – 7.5 5.0 – 7.5
Commercialisation GSA GSAPower supply
LNGDomestic offtakePower generation
CNG offtakePartner “in-house” use
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APPENDIX 8:APPENDIX 8:
DART ENERGY INTERNATIONAL:
UNCONVENTIONAL GAS PRIMER
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Coal Bed Methane Shale gas Tight gas
Gas is adsorbed onto the
surface of the coal
Gas is “trapped” within
the shale rock
Gas trapped in impermeable
hard rocks or sands
WHAT ARE “UNCONVENTIONALS”?
62
CBM and shale gas is the same end product as
conventional natural gas
Difference is source rock from which natural gas is
produced
Drilling techniques and principles of well completions are
similar to those used in the conventional oil and gas
industry
Advances in horizontal drilling and hydraulic fracturing
make CBM and shale gas economically competitive
surface of the coal the shale rock hard rocks or sands
Conventional natural gas
Gas exists in a free state in
the spaces between the sands
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HOW IS IT EXTRACTED?
Coal Bed Methane (CBM)
Water is removed from the
coalbeds (“dewatering”),
lowering the pressure in the
coals and the gas is “desorbed”
Typical
Depth
500m –
1,500m
Depth
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Shale gas
Water, sand and chemicals are
injected into the rock at high
pressures (“fraccing”) to crack
the rock and liberate the gas
Depth
>2,500m
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BASIC CBM WELL TYPES.
Vertical Lateral Multi-lateral
Lowest cost
Fastest completion time
Effective for thick coal seams
Used when coal seams are thin
Horizontal drilling techniques
High precision required
Minimise surface footprint
Fastest gas drainage
Most ‘hole in coal’
Cross-Section View
Radius Bend
64
Well design decision is based on economics
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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
COAL SEAM
COAL SEAM
Radius Bend
Vertical Collars
Lateral CollarsTypical CBM rig
• Conventional mineral rig
• Truck mounted
• In-seam steering technology
Typical wellhead
• Fully automated pump and
reservoir control
• Optimises production; reduces
field maintenance
60m
45m to
175m
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A TYPICAL SHALE WELL.
Deep vertical well with one or more laterals
Main difference is “fraccing” - pumping water
and sand (>98%) and additives (<2%) down
the wellbore at high pressure
The fluid injected at pressure fractures the
shale rock, and the sand (proppant) holds the
cracks open
Process is repeated multiple times along the
lateral wellbore to cover the maximum area
65
Source: Chesapeake Energy
lateral wellbore to cover the maximum area
Fluids are carried up the wellbore for
disposal or treatment and re-use ; sand prop
open the cracks, allowing gas to flow out
Highly regulated, technologically advanced
process which was developed in the USA
Source: Baker HughesSource: Canadian Society for Unconventional Gas
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AN UNCONVENTIONAL GAS WELL PRODUCTION PROFILE.
Nature of the source
rock results in a
fundamentally
different production
profile
66
profile
Significant technical
and commercial
impact
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UNCONVENTIONAL GAS PROJECT LIFE CYCLE.
1 - 3 yrs1 - 3 yrs
Explore
Appraise1Full Scale
Identification
67
2 - 3 yrs
20+ yrs 1 - 2 yrs
Appraise1
Initial Development1
Full Scale Development1
Note:
1 Once a well has been drilled and is of no further use, it will be abandoned. The
process includes safely sealing the well and rehabilitating the surrounding area, in
accordance with licence terms and applicable local regulations providing for
rehabilitation and industry best practice
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THANK YOU
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