Dart Energy (ASX: DTE) shares are poised to climb today after reaching a farm-out agreement for 13 of its UK licences with French multinational GDF Suez (EPA:GSZ) as part of a broader unconventional gas alliance between the two companies.
Under the agreement, GDF – a €43.79 billion (A$62 billion) market cap - will acquire a 25% interest in each of the licences by paying Dart US$12 million (A$12.4 million) in cash and meet its 75% share of costs up to US$27 million.
This will support an unconventional exploration and appraisal program over a three year period, including drilling up to four shale gas exploration wells and 10 coal seam gas wells.
Dart and GDF have also established a broader strategic cooperation agreement that includes provision of various support services from GDF and partner company SUEZ Environnement in the field of environmental service and water management, and the sharing of best practice.
GDF is the largest independent power producer in the world with annual revenues in excess of US$120 billion. It has a significant exploration and production presence in the UK.
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