(MENAFN- ProactiveInvestors - Australia) Dart Energy (ASX: DTE) will focus on its international gas projects in response to regulatory changes to coal seam gas exploration announced by the New South Wales government.
The NSW government said it would restrict exploration for coal seam gas around residential areas, by imposing a two kilometre buffer between exploration areas and residential areas.
Dart's portfolio approach to projects in different jurisdictions looks set to pay off as its NSW assets form only one component of the company's total portfolio.
Dart Energy International, a wholly owned subsidiary of Dart, has CBM and shale gas assets located in the UK, Europe and Asia.
DEI's CSG project at Airth in Scotland has a Gas Sales Agreement which, subject to all approvals, aims to supply up to 60 Bcf of gas over 8-years to SSE the UK's 2nd largest energy utility.
Significantly, DEI has already shown that it can produce CSG at commercial rates from Airth in Scotland without the need to fracture stimulate the coals, otherwise known as fraccing.
With many of the State's long-term gas supply contracts due to expire from next year, the NSW Government's decision will be interesting to watch unfold given the need to supply gas to users in the State.
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