IGas and Dart Energy shareholders vote in favour of acquisition plans

September 10 2014

At its Annual General Meeting on September 1st investors in onshore oil and gas firm IGas voted to approve the deal to buy their rival Dart Energy for £117 million. The shareholders of Dart then voted in favour of the proposed transaction on 10th September.

According to a press release from IGas Energy PLC:

"The only remaining conditions under the SPA  [(sale and purchase agreement)] and scheme are: the approval of the UK Competition and Markets Authority ("CMA"), [New South Wales] (NSW) Ministerial approval for a change in control in Dart's NSW licences and the approval of the Supreme Court of Queensland ("Court"). Consent has already been obtained from the UK Department of Energy and Climate Change. The remaining conditions can be waived by IGas and Dart.  In the event that they are not waived / not satisfied by the time of the Court meeting that is scheduled on Monday 15 September 2014, Dart will seek an adjournment of the Court hearing to a later date.

"Receipt of the CMA approval or NSW Ministerial approval, any decision by IGas and/or Dart to waive a condition of the Scheme or any adjournment of the Court hearing will be announced at the relevant time.

"Closing of the proposed acquisition remains scheduled for 1 October 2014".

On completion of the proposed transaction, IGas will have more than one million net acres under licence. UK Petroleum Exploration and Development Licences (PEDLs) allow the holder to pursue the exploration and development of tight gas, Coal Bed Methane (CBM), mine vent gas, oil shale, shale gas and gas storage in a previous gas field. IGas are focusing on shale gas and CBM, which they would extract from underground coal deposits by hydraulic fracturing ('fracking') and dewatering, respectively.

Dart Energy are currently awaiting a DPEA decision on their planning appeal against the decision of Falkirk and Stirling Councils to refuse their planning application for coal bed methane production in Falkirk, which was the subject of a Public Local Inquiry.

Publication date: 

Wednesday, September 10, 2014