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Proactive news summary: Dart Energy, Atlantic Coal, Dekeloil, Noricum Gold

Published: 17:03 22 Oct 2013 BST

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Dart Energy’s (ASX:DTE) deal with France’s GDF Suez had investors purring on Tuesday as the duo have joined forces to pursue shale gas opportunities in the UK.

French energy major GDF is taking a 25% stake in 13 of Dart’s 31 British licences as part of the tie-up.

The acreage is located in the high profile Bowland basin – spanning parts of North West England and Wales – and is estimated to contain around 60 trillion cubic feet of shale gas resources.

GDF will pay US$12 million upfront and crucially will cover up to US$27mln of Dart’s future costs for a programme that will include four shale gas wells and ten wells targeting shallower coal bed methane resources.

John McGoldrick, Dart’s chief executive, told Proactive that the deal is win-win for the company.

“It [the farm-out] sets us up really well for the shale programme going forward. I think from every aspect it is a good deal,” McGoldrick said. 

“Basically what the deal means is that the bulk of our commitments in the UK are now covered, plus we get a significant explorations programme for shale which is what excites everybody. 

“Along with the recent funding (for A$20.7mln) and the disposal of the Liulin asset (sold for A$19mln), we are actually very well funded now.”

He was not the only one taking up the UK’s shale gas potential. Jean-Marie Dauger, GDF’s executive vice president, said it is very confident about the potential of Britain’s nascent shale gas industry.

“GDF Suez is pleased to enter this first investment in UK shale gas as it complements the large presence of the group in the UK. We look forward to working with our partner, Dart Energy, to unlock the potential of these licences,” Dauger said.

The actual shale drilling phase of the partnership is not likely to start until some point in 2015. The majority of the CBM drilling is expected to be carried out until then.

Coming to the drilling phase slightly later than Cuadrilla and IGas, both of which are currently at that stage, could potentially benefit Dart should the planning and permitting process become smoother.

In Australia, Dart Energy shares soared over 30% higher to hit a 52-week high of 15 cents. The company still has its eye on a UK listing.

Atlantic Coal (LON:ATC), which is listed in the UK but mines anthracite in Pennsylvania, watched its shares fire up by a third to 0.28p after managing director Steve Best showed his faith by investing his own hard-earned cash in the company.

Best put his hand in his pocket and bought 7.3mln shares, taking his stake to 301mln shares, representing 23.1% of the issued share capital.

Shares have doubled over the last month after the company bounced back firmly into the black at the half-year.

Best paid 0.27p a share for his latest purchase, costing a total of £19,710. 

Elsewhere, DekelOil (LON:DKL) jumped 20% as it moved a few steps closer to its goal of becoming a significant producer of crude palm oil (CPO) in the Ivory Coast.

Its 60-tonnes-per-hour palm oil extraction mill is on course to generate revenues in January next year, it told investors.

In a update, the company said an empty run test of all equipment is scheduled in January next year, followed by a full capacity test ahead of the peak fruit harvesting season beginning in March.

The plant in the Ivory Coast is set to become one of West Africa's largest with a capacity to produce 70,000 tonnes a year.

The drilling results are coming thick and fast at Noricum Gold (LON:NMG) and, as with the last lot, the latest set is positive.

The group revealed further high grade gold and silver results have been returned from its drilling programme at location RZ at the Rotgülden project in Austria.

The best results from RZ01A were 16.7 metres (m) at 2.71 grams per tonne (g/t) gold and 13.4 g/t silver from six metres; this included three metres at 7.24 g/t gold plus 34.5 g/t silver from 14m, as well as 1.7m at 6.93 g/t gold plus 10.25 g/t silver from 21m.

“The latest drill holes from location RZ show continuing high grade mineralisation within the target area at Rotgülden and, due to the positive nature of these results, we believe there is scope for further drilling from this location to further extend mineralisation both across and up strike,” said Noricum Gold’s managing director Greg Kuenzel.

Bushveld Minerals (LON:BMN) said on Tuesday it now holds 54.16% of Australia-listed Lemur Resources, following further acceptances to its offer since October 4. The offer for Lemur is open until 5pm on November 1 this year.

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