Dart Energy Limited (ASX:DTE) Announce The First Gas Flows At Sangatta West Project

Brisbane, April 1, 2011 AEST (ABN Newswire) - Global coal bed methane (CBM) company Dart Energy Limited (ASX:DTE) is pleased to announce the first gas flows at the Sangatta West project in East Kalimantan, which is among the first in Indonesia from a dedicated coal bed methane pilot well.
The SCBM#1 pilot well at the Sangatta West project began flowing gas in a controlled operation on March 25 after the installation of a down hole pump simultaneous with the dewatering process. Continual gas flow has been sustained since that time. Dart and its joint partners in the project understand this to be the first dedicated CBM PSC well in Indonesia to successfully release gas.

SCBM#1 is the first of four pilot wells planned for Sangatta West and was drilled in February, 2011. The well was drilled to a depth of 830 metres. Well testing over the next two to three months will determine production and reserves potential, once a stabilised gas flow is achieved. This production test data along with the geological and geophysical data from the drilling programme will provide critical inputs for a subsequent independent reserve certification and future development planning.

Sangatta West CBM Inc., is a joint-venture company that operates the Sangatta West CBM Production Sharing Contract (PSC) in East Kalimantan. The JV partners to the PSC are joint operators Ephindo Energy (with a 24 percent indirect interest in the PSC) and Dart (24 percent) and non-operating partner PT Pertamina-Hulu Energy Metana Kalimantan-A with a 52 percent participating interest

It is intended that gas produced from SCBM#1, along with that from other planned pilot wells at Sangatta West, will initially be sold under an approved pilot-to-power scheme. Dart's operating partner in Sangatta West, Ephindo, has signed a memorandum of understanding with GE and local gas-fired genset supply company, Navigat, with an aim to supply gas-fired electricity to the local grid.

Also in Indonesia, the Joint Operating Agreement for the Tanjung Enim PSC has been signed by all parties, and consequent to this the first exploration well on the Tanjung Enim block in Sumatra has been spudded. This marks the commencement of the 2011 planned drilling campaign of 3 core wells and 3 pilot wells. An amendment to the PSC contract to allow pre-plan of development gas commercialisation has also been submitted to the government for approval, so as to facilitate early-stage pilot-to-power sales similar to that contemplated at Sangatta West.

Contact

Mr Simon Potter Chief Executive Officer Tel: +65-6508-9840 Mr Shaun Scott Executive Director and acting CFO Tel: +61-7-3149-2100 Mr Eytan Uliel Chief Commercial Officer Tel: +65-6508-9840 http://www.dartenergy.com.au