Dart Energy Limited (ASX:DTE) Signs New Coal Bed Methane Production Sharing Contract in Indonesia

Brisbane, Dec 6, 2010 AEST (ABN Newswire) - Global coal bed methane (CBM) company Dart Energy Limited (ASX:DTE) today announced the signing of a CBM production sharing contract (PSC) in relation to the Muralim block (formerly known as the Kebur block) in South Sumatra, Indonesia.

Dart has partnered with Medco Energy (Medco), a leading independent Indonesian energy company, in this PSC. The contractor participating interest in the block is shared 50% Dart, 50% Medco, with Dart acting as the operator of the block for CBM purposes under the terms of this PSC.

The PSC is for a 30 year term, with a 6 year initial exploration and appraisal period. During the first and second years of appraisal (2011 and 2012) Dart's plan is to undertake various studies and to drill two core wells in each year. During the third year of appraisal (2013), Dart's plan is to complete up to 3 pilot wells - though this could be accelerated in the event of early encouraging results. Dart's share of costs for the initial 3 year program (including PSC fees and signature bonus) is budgeted at approximately US$8m.

The Muralim block is located within South Sumatra Province. The PSC relates to an area of 983 km2, and covers part of the area of the Medco South Sumatra conventional gas PSC. The area is located within the South Sumatra Basin, which is a major coal and oil producing region with generally net coal thickness in the range of 20 - 35m. Individual seam thickness can be greater than 20m. Coal rank is sub-bituminous with vitrinite reflectance ranging from 0.30 to 0.35 which bodes well for CBM potential.

The Muralim block is not only proximate to the South Sumatra pipeline which transports gas to Java, the main demand island of Indonesia, but also to Dart Energy's other operated CBM block in South Sumatra, Tanjung Enim, where drilling will commence in the near term. Current conventional gas fields supplying both the local South Sumatra market as well as the export pipeline are in decline, and it is anticipated that CBM may be an available source of supply to replace or supplement declining conventional reserves. The gas shortage in West Java is estimated will be about 300 MMSCFD in 2016. Current pricing of gas supplied from Sumatra to Java is in the region of US$5.00/gj, and is widely considered to be likely to escalate in the future.

Netherland Sewell & Associates, Inc has completed an initial resource estimation of the Muralim block, as at 30 April 2010, and has estimated the following:

- Best estimate Gas-in-Place resource (gross): 2.7 Tcf

- Best estimate prospective resource (gross): 1.5 Tcf

Commenting on the signing of the PSC, Simon Potter, Dart CEO, said:

"We see today's PSC award as another important step forward in the growth of our Indonesian business and look forward to working with Medco on realising the potential of the contract area. The Muralim block is not only large but has all the indications of a considerable CBM resource, adjacent to existing infrastructure and a market of significant demand and growth potential. Expanding our interests in South Sumatra is strategically relevant, complements our other interests in the region very well and will give us further options for accelerating gas into the substantial markets of Indonesia".

For the complete Dart Energy announcement including Muralim Location Map, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64353-ASX-DTE-227070.pdf

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