Award of Bontang Bengalon PSC

Award of Bontang Bengalon PSC

• Dart awarded Bontang Bengalon block in Indonesia
• Consolidates strategic acreage position in East Kalimantan
• Operatorship and 100% working interest provides strong capacity to farm-down
Dart Energy International Pte Ltd (a wholly owned subsidiary of Dart Energy Limited (ASX: DTE, “Dart”) has been awarded the Bontang Bengalon coal bed methane block in East Kalimantan, Indonesia. A Production Sharing Contract (PSC) for the block is expected to be signed with the Indonesian government within 1-2 months.
The Bontang Bengalon block is located in the middle part of the Kutei Basin in East Kalimantan, with a total area of 410.7 km2. The block is divided into two areas: the southern part being located adjacent to the Bontang LNG facility, and the northern part is 62km north of that facility and adjacent to the Sangatta West PSC, in which Dart is a net 24% participant and joint operator.
Dart will be operator of the block with a 100% working interest. The PSC term will be for 30 years.
In the initial three year exploration period, Dart intends an exploration work program consisting of 3 core wells and 1 pilot well. First work is expected to commence in mid to late 2013.
Dart considers the Bontang Bengalon block to be highly prospective, given the significant exploration and pilot appraisal work undertaken at the neighbouring Sangatta West block, where CBM reserves and commercial viability have already been established. The Bontang Bengalon block increases Dart’s net acreage in East Kalimantan and provides enhanced ability to access the significant market opportunity in the area. A 100% working interest provides Dart the flexibility to introduce new partners to the project over time.
Dart Energy International CEO John McGoldrick said: “We have been working on this opportunity for over three years and are pleased to have now been awarded the block. Our East Kalimantan strategy is to develop a sizeable onshore gas resource, given a local market with substantial needs for gas, including the nearby Bontang LNG facility. The block consolidates our East Kalimantan acreage, enhances commercialisation options, and our high working interest means we could seek to introduce partners to the project in the future.”
For and on behalf of the Board
Paul Marshall, Company Secretary
www.dartenergy.com.au
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