For personal use only - ASX · the Company, Dart Energy Limited or any of their respective...

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

For

per

sona

l use

onl

y

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.

For

per

sona

l use

onl

y

DART ENERGY INTERNATIONAL -

DEVELOPING GLOBAL UNCONVENTIONAL GAS.

For

per

sona

l use

onl

y

�� 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


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)



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

For

per

sona

l use

onl

y

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.

5

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

per

sona

l use

onl

y

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 & CONFIDENTIAL

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


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

per

sona

l use

onl

y

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

8

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


Based on c. 6km2 drainage area

SUMMARY

# Wells 160-180




SUMMARY

# Wells 110-130



3P Reserves: 38 Bcf


# Wells 30-35



2P Reserves: 29 Bcf

3P Reserves: 49 Bcf


For

per

sona

l use

onl

y

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

4

For

per

sona

l use

onl

y

OBSERVATIONS & LEARNINGS.

For

per

sona

l use

onl

y

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

11

• 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:

For

per

sona

l use

onl

y

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

12

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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


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

For

per

sona

l use

onl

y

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

17

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

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

ADDITIONAL MATERIALS.

For

per

sona

l use

onl

y

APPENDIX 1APPENDIX 1

DART ENERGY INTERNATIONAL:

BUSINESS OVERVIEW

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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)

For

per

sona

l use

onl

y



KEY CBM PROJECTS

For

per

sona

l use

onl

y

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.

For

per

sona

l use

onl

y

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


For

per

sona

l use

onl

y

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 -


For

per

sona

l use

onl

y

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


For

per

sona

l use

onl

y

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


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

Notes:For

per

sona

l use

onl

y



SHALE BUSINESS OVERVIEW

For

per

sona

l use

onl

y

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

− partner with strategic / financial companies to sustain required capital expenditureFor

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

DART SHALE – POLISH SHALE ASSETS.

`

`

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

36

``

`

``

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

For

per

sona

l use

onl

y



REGIONAL ASSET OVERVIEW

For

per

sona

l use

onl

y

ASSET OVERVIEW - CBM.


(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 - -


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


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

Notes:

For

per

sona

l use

onl

y

ASSET OVERVIEW - SHALE.


(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

39

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


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

Notes:

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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


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


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

Seek other CBM and shale gas opportunitiesFor

per

sona

l use

onl

y

�

�� 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

For

per

sona

l use

onl

y

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


Pipeline

Commercialisation of incremental gas from Liulin project

Pursue other CBM and shale gas opportunitiesFor

per

sona

l use

onl

y

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


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

StrategyFor

per

sona

l use

onl

y

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


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


Pipeline

Discussions underway for 3 CBM assets in Kalimantan

Seek other CBM and Shale gas opportunities

For

per

sona

l use

onl

y

APPENDIX 5

DART ENERGY INTERNATIONAL:DART ENERGY INTERNATIONAL:

BOARD, EXECUTIVE AND KEY MANAGEMENT

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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.

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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


51

Ross Hendrie

Head of Petroleum Engineering


Previously held technical and project management roles within Shell


Previously Executive V.P. of Exploration for Greenpark Energy, Chief Geologist for PetroSA and Forest Oil

For

per

sona

l use

onl

y



GAS MARKET OVERVIEW

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

APPENDIX 7:APPENDIX 7:


GUIDANCE MATERIALS

For

per

sona

l use

onl

y

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)

For

per

sona

l use

onl

y

“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

57

# 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

For

per

sona

l use

onl

y

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.

For

per

sona

l use

onl

y

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

59

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


For

per

sona

l use

onl

y

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


60

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



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

For

per

sona

l use

onl

y

APPENDIX 8:APPENDIX 8:


UNCONVENTIONAL GAS PRIMER

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

63

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

For

per

sona

l use

onl

y

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

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.

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

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

For

per

sona

l use

onl

y

THANK YOU

For

per

sona

l use

onl

y

For personal use only - ASX · the Company, Dart Energy Limited or any of their respective...

Documents

Transcript of For personal use only - ASX · the Company, Dart Energy Limited or any of their respective...