IGas to acquire Dart Energy to create UK giant
Saturday, May 10 2014 - 04:55 AM WIB
London-listed IGas Energy Plc saigned on Friday an agreement with ASX-listed Dart Energy Ltd to acquire the latter in a merger that would create a leading UK oil and gas company.
?The combination of IGas and Dart will create a market leading onshore UK oil and gas company with the largest area in the UK under license of over 1 million net acres including major UK shale basins,? IGas said in a statement received Saturday.
The statement said that board of the boards of IGas and Dart recommended the shareholders of the two companies to approve the acquisition worth about US$198 million (A$211.5 million).
Under the proposed acquisition scheme, Dart shareholders will receive 0.08117 IGas shares for each Dart share, equivalent to A$0.1898 per Dart share based on the A$:? exchange rate and closing share price of IGas on 8 May 2014, and will hold approximately 30.5 percent of the enlarged company on a fully diluted basis.
The statement said that Dart has cancelled its planned listing on the AIM Market of the London Stock Exchange (AIM), where IGas is already listed. However, upon implementation, the transaction will provide Dart shareholders with IGas consideration shares that will be admitted to trading on AIM.
IGas Energy produces around 3000 barrels of oil & gas equivalent per day from 110 sites around the UK, including conventional and coal-bed methane production along with a number of shale exploration prospects.
Dart Energy holds 24 licenses in the UK for shale and coal-bed methane along with non-core licenses in Australia, Germany, Belgium, Indonesia and India. The company has interest in four CBM blocks in Indonesia, two in Kalimantan (Bontang Bengalon PSC, 100%, Sangatta West PSC , 24%) and two in South Sumatra (Muralim PSC, 50%, and Muara Enim PSC, 45%).
Igas Energy plans to ?divest all non-UK assets of Dart in an orderly process? to focus on UK unconventional gas.
IGas' CEO Andrew Austin said: "This transaction puts IGas at the heart of unlocking Britain's energy potential. It demonstrates our commitment to, and confidence in, the UK onshore oil and gas sector.?
?This is a British success story establishing IGas as a key contributor to UK energy mix and security. The transaction further strengthens our position financially, operationally and also significantly increases our licenced acreage as we seek to unlock the untapped energy resource that exists in Britain,? he added.
Dart's CEO John McGoldrick said: ?Success in the oil and gas business comes from scale, and the combination of Dart and IGas achieves that scale, creating a clear market leader with a vastly greater depth in terms of asset base, access to capital and operating capability, all of which will be critical to achieving long-term success.?
Editing by Reiner Simanjuntak