The Scottish contract, under which gas deliveries will start in 2013 will stand as a model for similar deals Dart wants to sign up for its other operations, all shrewdly located chose to favourable priced energy markets. It already has one other sale contract for its Liulin project in China, where production is due to star in July 2012 providing Dart's first energy sales.

Back in May, Cuadrilla Resources made its first UK application of fracking  to use Coal Bed Methane (CBM) technology to extract shale gas near Blackpool. It's findings however will still be under wraps for four years, so the drilling work by Dart Energy Europe due to start next year, will not gain from any of Cuadrilla's findings.

CBM involves drilling into coal seams at depths of around 4,000 feet removing the water which unlocks trapped methane, a controversial technology in the US, because it involves hydraulic fracturing, ( fracking) pumping water and chemicals into seams at high pressures to help with extraction by fracturing formations.

This is believed to carry serious environmental risks such as contaminating ground water and bringing hazardous waste to the surface. The process is banned in France and being reviewed by the German and UK Governments.

"The initial 2P now 3P reserve certification at (above) PEDL 133 has been achieved through a dedicated field development planning process where we have applied Dart's expertise to build and accelerate the project," says  (right) Dart CEO Simon Potter. "The process will now enable us to move swiftly to achieve early commercialisation, benefitting from easy access to market and Europe's high gas prices."

During the review NSAI updated its estimate of the shale potential in PEDL 133 to 2.4Bcf of original gas in place and vaulted Dart's recently acquired USCB and Milejow licenses in Poland. That established that the Milejow licence has significant shale potential too, with a mid-case original gas in place of 9.48Bcf.

Europe represents a high demand, high gas price environment for gas producers. Dart is working to explore, appraise and develop coal bed methane in multiple countries across Europe.

In February Dart Energy completed the 100% acquisition Composite Energy Limited, representing Dart Energy's entry into the European Coal Bed Methane and shale gas industry.  Composite was established in 2004 to pursue CBM and shale gas opportunities in Europe. 

Prior to the Dart acquisition, reports  The Herald it was owned by its founders and management, and strategic and financial advisors, including the Royal Bank of Scotland and BG Group.  Composite has since been rebranded as Dart Europe.

Dart Energy has signed the five-year deal to supply Scotia Gas Networks with methane that it expects to extract from its 329km2 acreage near Airth  (left Airth Castle) in Stirlingshire using CBM extraction. 

Scotia, which supplies gas to Scotland and southern England, is owned by two Canadian pension funds and SSE and this is claimed to be first such deal of its kind in Scotland.

FOOTNOTE: Natural Gas Fracking