(MENAFN - ProactiveInvestors - Australia) Unconventional gas group Dart Energy (ASX:DTE) said it made steady operational progress during the quarter to end-June 2012 amidst a challenging global economic and equity market environment.
Highlights from the second quarter of 2012 include an independent report, giving the company indicated original shale gas-in-place in its European portfolio of 143 trillion cubic feet in the high case, with a best estimate of 76.0 TCF net.
It also saw production testing at the Liulin field in China which exceeded 700,000 standard cubic feet per day, and commercialisation of the project is on track towards first revenue and cashflow in 2013.
The Fullerton Cove pilot project in Newcastle, New South Wales received regulatory approval to commence drilling.
It also decided to not pursue an IPO of Dart Energy's International business on the Singapore Stock Exchange at this time, given market conditions.
Since the end of the second quarter, the group has started production of gas from its Airth coal seams project in the Forth Valley, Scotland, and the construction of the independently owned compressed natural gas (CNG) facility at Liulin, China, has been completed and it is now awaiting final approval.
Dart Energy's cash position at the end of the quarter was approximately A72.4 million, and it has liquid investments worth A4.8 million.
Dart Energy International had previously entered into a mandate with HSBC Bank to arrange an up to US100 million senior secured revolving borrowing base facility for development funding of its international near term development projects.
Due diligence and work on the facility documentation continued during the quarter and is expected to be finalised in the coming months.
A number of exploration projects across its international portfolio are at various stages of progress, which should provide steady newsflow in the months ahead.