PERTH (miningweekly.com) – Unconventional gas developer Dart Energy has begun the process of selling off its Chinese coal seam gas (CSG) assets, agreeing to sell its wholly owned Singaporean subsidiary to Hong Kong HuiHua Global Technology.
The subsidiary holds 50% of the issued share capital of Fortune Liulin Gas, a Hong Kong company which, in turn, holds a 50% interest in the Liulin production sharing contract, in China.
“In March 2013, Dart was restructured so as to focus the business on our extensive, high-prospect shale and coalbed methane acreage in the United Kingdom. As part of the restructure, various assets were identified as being noncore to the revised strategy, and we began processes in the multiple countries that sought to sell, farm out or exit these noncore assets,” said Dart CEO John McGoldrick.
He noted that the company was pleased to have reached an agreement with Hong Kong HuiHua Global, which would see Dart monetise its previous investment in China, and which would provide the company with cash that could be redeployed in support of its core business activities.
“We continue to actively pursue monetisation of other noncore assets in various international locations and, at the same time, we continue discussions at securing one or more appropriate farm-out arrangements,” McGoldrick added.