LRM and Dart Energy sign long term coal bed methane (CBM) gas mining collaboration agreement
Hasselt, 29 April 2011. The Limburg investment company LRM and Australia’s Dart Energy Limited (Dart) (ASX: DTE) have signed a long term collaboration agreement for CBM gas mining in the Campine coal basin. The company ‘Limburg Gas NV’ will be established for the purpose and the parties will jointly invest in appraisal of CBM, which could see investment of up to EUR 10 million over a period of three years.
Campine coal basin once again a source of energy
Due to the increased scarcity of traditional energy sources, the recovery of methane gas from coal beds (Coalbed Methane or CBM) is gaining weight around the globe. In North America and Australia, CBM has been an important part of the energy mix for many years. Europe has great potential, but commercial CBM production is practically non-existent at present.
“A recent VITO (Flemish Institute for Technological Research) study has shown a theoretical potential of seven billion m3 of extractable methane gas in Limburg, equalling the energy consumption of 175,000 families – or more than half of all Limburg households - over a twenty year period” quotes Ingrid Lieten, Flemish minister of Innovation.
Limburg Gas
LRM and Dart have entered into an exclusive cooperation contract to test the potential for CBM in practice, and prove the commercial exploitation capacity. The parties will establish the project company Limburg Gas NV, with Dart holding 80% of the shares and LRM the remaining 20%.
Drawing on Dart’s international experience in CBM, Limburg Gas will initially map the areas with the highest potential for successful CBM development, and select locations for initial test drilling. Appraisal drilling followed by pilot extraction operations will be initiated after the necessary licenses have been obtained. This first phase of appraisal drilling and pilot extraction is expected to span a period of three years. Depending on the success of the programme, the parties could jointly invest up to EUR 10million: EUR 8 million from Dart and EUR 2 million from LRM.
Stijn Bijnens, General Manager of LRM states: “Today we were able to convince a world player in the field of CBM gas production of the advantages of investing in Limburg's future with us. Dart Energy’s expertise, experience and resources enable us to maximise exploitation of the potential gas supply. This collaboration agreement is the best proof that Limburg has what it takes to act as a lab for innovative technologies.”
New industrial activity
Based on the results and findings from the initial appraisal campaign, LRM and Dart intend that further projects be identified and rolled out across the entire Campine coal basin. Successful roll-out may result in the development of new industrial activity in Flanders, thus supporting the local economy and promoting local employment. It would also offer opportunities to assemble know-how and develop new technologies. Depending on the level of success, exploitation may extend over a period of twenty to thirty years.
Simon Potter, CEO and Managing Director DART Energy, said: “Simon Potter, CEO and Managing Director of DART Energy said: “The transaction marks the beginning of a relationship with NVM and its parent company, LRM, as our Belgian partner. We are delighted that Dart has been selected as NVM’s partner of choice, and we look forward to working closely with our new Belgian partners as we seek to better understand and then unlock the CBM resource potential in the Flanders region.
About Dart Energy
Dart Energy is an Australian S&P/ASX 200 listed company, focussed exclusively on developing coal bed methane resources around the world that are capable of rapid commercialisation. Coal bed methane offers a clean, safe and cost-effective energy solution for an increasingly energy constrained world. Dart currently has 35 active coal bed methane licences in Australia, India, China, Indonesia, Vietnam, the UK and Poland.
Dart’s European headquarters is in Stirling, Scotland.
www.dartenergy.com.au
About LRM
LRM is a profit-driven investor, offering entrepreneurs a unique combination of risk capital and real estate. Oxygen for growth!
Although LRM is a generalist, it has built up specific competences in ICT, Life Sciences and Cleantech. LRM’s activities contribute to the economic development and general employment in the province of Limburg. They aim at all sectors and companies, from starter companies via growing SMEs to large corporations.
Access to LRM runs across five domains: ICT & Media, Life Sciences, Cleantech & Energy, SME and Large Enterprises.
www.lrm.be
For more information contact
LRM
Jeffrey Alenus
Commercial Director
T +32 11 24 68 19
M +32 475 93 03 61
E j.alenus@lrm.be