Dart Energy (ASX:DTE) is to monetise its Chinese investment through the sale of subsidiary Dart Energy (FLG) Pte Ltd for around US$20.8 million in cash, it says.
The sale agreement is with a subsidiary of China Oil HBP Science & Technology Corporation.
The Dart subsidiary owns 50% of the share capital of Hong Kong firm Fortune Liulin Gas, which holds a 50% interest in the Liulin production sharing contract in China.
Dart chief executive John McGoldrick told investors: “In March 2013 Dart was restructured so as to focus the business on our extensive, high-prospect shale and CBM acreage in the UK.
"As part of the restructure, various assets were identified as being non-core to the revised strategy, and we began processes in multiple countries that sought to sell, farm-out or exit these non-core assets.
"We are thus very pleased to have been able to reach today’s agreement, which will see us monetise our previous investment in China, providing us with cash which can be redeployed in support of our core business activities," he said.
"We continue to actively pursue monetisation of other non-core assets in various international locations, and at the same time we continue discussions aimed at securing one or more appropriate farm-out arrangements”.
Completion of the sale is subject to various conditions and is expected within two or three months.