UK shale gas firm IGas Energy has agreed to acquire Australia-based Dart Energy in a share-based deal worth approximately £117.1m.
Dart Energy holds 24 prospective shale gas licences in the UK. The company has farm-out agreements with GDF SUEZ and Total E&P UK for the funding and execution of shale gas and CBM exploration work programmes on some of the licences in the next three years.
IGas said that the deal would create an onshore oil and gas company with the largest area in the UK under licence of more than 1 million net acres, including the country’s major shale basins.
IGas will pay Dart shareholders with shares worth A$0.1898 per Dart share, which is a 40.6% premium over the closing price of A$0.135 on 8 May. Shareholders in Dart Energy will hold around 30.5% of the enlarged group on a fully diluted basis.
IGas Energy CEO Andrew Austin said that the transaction demonstrates the company’s commitment to and confidence in the UK onshore oil and gas sector.
"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," Austin added.
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By GlobalDataDart Energy CEO John McGoldrick said: "We believe this transaction is in the best interests of Dart shareholders, both in terms of the immediate premium being achieved, and in terms of the ability to participate in the long-term value creation potential of the UK shale industry, which we consider will be one of the defining energy market stories of this century."
IGas produces around 3,000 barrels of oil and gas equivalent a day from 110 sites throughout the UK.
