uk farm out announced, page-2

...Key aspects of the farm-out are:
• The farm-out relates to thirteen licences (out of a total of 31) held by Dart in the U.K. All farmout licences are in England / Wales, in both the western and eastern parts of the Bowland
Basin, an area considered highly prospective for unconventional gas. A recent study by the
United Kingdom Department of Energy and Climate Change and the British Geological Survey
estimates shale gas resource potential in the Bowland Basin ranging between 822 Tcf (low
estimate) to 2,281 Tcf (high estimate) with 1,329 Tcf as the best estimate.
• Dart is currently the operator of these licences and holds a 100% interest in each. GDF SUEZ
E&P UK will acquire a 25% working interest in each licence. Dart will retain a 75% interest and
operatorship of each licence.
• The licences subject to the GDF SUEZ E&P UK farm-in cover a total area of 1,378km2
(340,510 acres), representing approximately 38% of Dart’s total U.K. acreage. The transaction
effectively reduces Dart’s net acreage by approximately 10%.
• As consideration for the interest acquired, GDF SUEZ E&P UK will pay to Dart US$12 million in
cash, and meet Dart’s 75% share of costs up to US$27 million (as well as meet GDF SUEZ
E&P UK’s 25% share). The funding will support an agreed unconventional exploration and
appraisal program over a three year period, including drilling up to four shale gas exploration
wells in different areas of the Bowland basin and ten Coal Bed Methane (CBM) exploration
wells.
• The farm-out is subject to customary conditions precedent, including approval of the UK
Department of Energy & Climate Control (“DECC”) to the transfer of working interest in the
licences to GDF SUEZ E&P UK.
• On completion, Dart will have gross acreage of 2,481 km2
in the Bowland basin, and net
acreage of 2,047 km2
. Netherland Sewell & Associates Inc (“NSAI”) previously certified 60TCF
of shale GIP (best estimate) and 4.56TCF of CBM 3C Contingent Resource across the 13
blocks subject to farm-out.
Alongside the farm-out, Dart and GDF SUEZ have established a broader strategic cooperation
between the two companies, focussed on unconventional gas activities (and especially shale). This
includes provision of various support services from GDF SUEZ and partner company SUEZ
Environnement in the field of environmental service and water management, and the sharing of
best practice....