dart energy agm report

Hey guys, I posted a report on the AGM below but I did and do have a bias towards only being interested in the Gunnedah Basin because of my ESG holdings.

I'll do a more comprehensive post including photos on my facebook page..

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Well I've returned after stuffing my face full with fresh sandwiches, cakes and some English Breakfast tea.

An excellent AGM here. Definitely in a different league to Westside and Comet Ridge.

I arrived early and had a chance to chat to the ex-Arrow CEO and now DART Chairman for a while. I also had the fortune of spending a fair amount of time with the EX-PES (Pure Energy) chairman. He had some tales to tell me of which I wouldn't dare repeat publicly - lol... Nothing bad so it's all good. :) There was definitely a "club" atmosphere to these guys having all made a quid or 2 in past ventures and they were very friendly to one another.In fact they all had plenty of off the record discussions with me while we waited for everyone to arrive.

Anyway observations I had relevant to ESG are as follows:

Dart's chairman spoke of the quality of the various Coal Seams. Permeability is king! The Surat Basin is one of the best, the Bowen Basin not so good with Gunnedah in between the two.

Yes, with high permeability you have a water "problem" to deal with but it is far, FAR easier and PREFERABLE to manage a water problem than to manage low permeability. He also spoke of saturation and of the technology required to extract from poorer quality seams being very expensive.

He said SANTOS are having to spend a LOT of money on some of their tenements to get them up to decent commercial levels and he gave me body language to suggest SANTOS weren't happy about the added expense.

NSW is now where QLD was 6 years ago, according to these guys. The chairman stated a lot of the smaller players are moving to NSW because most QLD is now tied up by the "big players".

Importantly, on a slide presented by the M.D, the M.D made EXTRA mention - in fact highlighted to the room how one of Apollo's tenements is right next door to the next big export facility being pioneered by Eastern Star Gas in Newcastle.

Was it just a sell job to the shareholders considering they had just paid $200 Million for Apollo??

Dart Energy are engaging upon an aggressive drilling campaign in the Gunnedah Basin in 2011 and have Joint Ventures in place with SANTOS acquired through Apollo.

GASLAND and Fraccing was talked about yet again. The Chairman made mention of the uniquely excellent quality of QLD Coal Seams where Fraccing is hardly ever used because it is simply not required. Also Fraccing may be used overseas but they are very selective of the fraccing fluid and would always stay ahead of environmental conditions. The U.S fraccing through Shales is different and is an issue for the U.S - he stated.

The ex- PES Chairman highlighted how TINY the footprint is of Coal Seam Gas. You can stick a well in a very small space and the drill head is the size of a mail box. You barely notice the wells are there. He stated emphatically the whole "farmer" issue is down to compensation. Pay them enough and they will go away.

I threw in the question of SANTOS taking over ESG. I think they were all surprised I just came out and said it - lol but of course none of them committed to an answer but acknowledged SANTOS were in the area for a reason.

One part of the presentation had everyone laughing robustly when the SANTOS logo was NEXT to Apollo's in the acquisition slide. "Now, we have not made an offer for SANTOS" the M.D reassured - lol!

Dart seemed to take pride in their ARROW energy team. the success of the team in the past and how their "first mover advantage" is setting themselves up all over again. The Gunnedah Basin tenements are an important strategic step towards monetising the last Australian CSG frontier (NSW) before taking advantage of their overseas assets.

They did make strong mention to have NOT ruled out going back into QLD sometime in the future if the oppurtunity presents itself.

I asked about the Galilee Basin. They responded with it being unproven and something to think about way off into the future.

Anyway, a long post and that's all for a quick download off the top of my head, I'll do a full write up later through my facebook page.. :P