Dart Energy (ASX: DTE) has signed agreements to establish 4 coal seam gas and 1 shale gas production sharing contracts in China, a major expansion of its business in the country.
It said some of these potential new licences could hold multiple trillion cubic feet of gas resources while the shale gas play would make it one of the first foreign companies in the sector.
Under the letter of intent with Henan CBM (HCBM) and Hong Kong Prosperous Clean Energy Company (HPEC), the three companies will negotiate exclusively, and seek relevant Government approvals for PSCs covering assets held by Henan.
These consist of the 4 CSG blocks covering 2000 square kilometres in Henan Province and the 2038 square kilometre shale block in Sichuan Province that was awarded to HCBM in the first shale gas open-bidding round in China, which was open only to domestic companies.
Dart will immediately start a technical evaluation of the various areas, and associated due diligence.
It said some of these potential new licences could hold multiple trillion cubic feet of gas resources while the shale gas play would make it one of the first foreign companies in the sector.
Under the letter of intent with Henan CBM (HCBM) and Hong Kong Prosperous Clean Energy Company (HPEC), the three companies will negotiate exclusively, and seek relevant Government approvals for PSCs covering assets held by Henan.
These consist of the 4 CSG blocks covering 2000 square kilometres in Henan Province and the 2038 square kilometre shale block in Sichuan Province that was awarded to HCBM in the first shale gas open-bidding round in China, which was open only to domestic companies.
Dart will immediately start a technical evaluation of the various areas, and associated due diligence.
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