Substantial Leverage to UK and Asian Unconventional Petroleum

ASX Conference

October 2013

Dart Energy Limited 

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THE “NEW” DART ENERGY

SECTOR EXPOSURE

QUALITY ASSETS

CLEAR PATH TO VALUE

DELIVERY CAPABILITY

ATTRACTIVE VALUE

Exposure to unconventional gas sector – energy game changer; U.K. near-term strategic focus

Large position within key UK shale play (BowlandShale) and certain CSG assets

Clear pathway to value: UK shale exploration and CSG development, international optionality

Streamlined, refocused management and team; world-class partner (GDF-Suez) for U.K. Shale

Potential to benefit from near-term activity and rerating of asset values in line with peers

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EXPOSURE TO EXCITING SECTOR ‐ RIGHT TIME, RIGHT PLACE

Shale and CBM have transformed the energy landscape in North America and AustraliaUK is next with significant unconventional gas potential and industry momentumDart Energy is well placed; recent validation via farm-in by a major (GDF-Suez)

UK MARKET CONSIDERATIONS

Gas ~40% of energy mixLong term supply deficitsDependence on gas importsand coalSecurity of supply concernsLarge indigenous resourcesInfrastructure in placeHigh prices

Market

UK RESOURCE CONSIDERATIONS

800 – 2,200+ TCF shale gas resource (BGS estimate)Technical potential / gas flow demonstratedValidation by two majors –Centrica-Cuadrilla farm-in; GDF-Suez-Dart Energy farm-in

Resource

UK REGULATORYCONSIDERATIONS

Recognition of the need to boost domestic supplyMinistry encouraging unconventional gas activityEmphasis on safety and community benefitApproval framework in place

Regulatory Framework

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500 

1,000 

1,500 

2,000 

2,500 

3,000 

3,500 

4,000 

4,500 

Annu

al Produ

ction / D

emand (Bcf)

Demand Domestic Production

U.K. GAS SCENARIO – STRONG CASE FOR INDIGENOUS GAS

Source: Department of Energy and Climate Change data extracted 22 July 2013 (https://www.gov.uk/oil-and-gas-uk-field-data)

Past:Surplus

Self-sufficient

Current:Import reliant~50% of gas

Future: Major Security of Supply Issues:Substantial long-term supply deficit ~75%

Deficit met from high-priced imports

By 2030:2.1 Tcf p.a. Shortfall

~75% of demand

Shale can fill the gap – no other viable domestic alternativesGovernment is therefore very supportive

Demand

Domestic Production

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QUALITY ASSETS – LARGE POSITION IN BOWLAND SHALE

Centrica acquires 25% for £40 million cash; plus £60 million work funding

BOWLAND BASIN – THE UK’S STORE OF SHALE GAS

UK’s most prospective shale gas play>1,300 TCF shale gas potential (per BGS report)Thick shales; good gas; flow-rates demonstrated Cuadrilla vertical well – IP > 1 MMscf/d activity underway across the basin to establish

commerciality; corporate activity ramping upGovernment policy is supportive

One of the largest positions in both west and east Bowland shale – 26 licences, 2,481 km2

Up to 110 TCF gas in place (net; NSAI assessed); (up to 83 TCF post GDF-Suez farm-in)GDF farm-in across 13 licences - quality partner and funded work program 3 – 4 Shale wells; 10 CSG wells $12 million cash; plus $36 million program

funded (including $27 million Dart’s carry) Valuation in line with Cuadrilla transaction

BOWLAND SHALE – AN EXCITING PLAY

DART IS WELL PLACED

GDF‐Suez farm‐in to 25% of 13 Dart licences, East and West Bowland

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FARM‐IN BY A WORLD CLASS MAJOR, GDF‐SUEZ E&P UK

GDF-Suez farm-in across 13 licences25% working interest; Dart operatorship1,378 km2 gross; net 345 km2

60 Tcf gross GIP (best estimate); net 15 TcfFunds significant activity across portfolio

3 – 4 shale wells; testing subject to results10 CBM wells

Substantial incremental funding for DartUS$12 million cash upfrontUS$27 million of Dart Energy’s costs carried (i.e. US$36 million gross work program)

Value in line with Centrica-Cuadrilla deal (US$2.6 million / Tcf OGIP vs US$2.8 million)Quality Partner

#1 power producer globally; >US$120 billion revenues; 130,000 employees globallyLeading operator in the U.K. with a reputation for safe and responsible exploration and production activities

Validates Dart Energy’s U.K. shale value;Upside retained via 75% operating interest

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QUALITY ASSETS – DEVELOPMENT READY CBM IN SCOTLAND

PEDL 133

PEDL 159

Sizeable potential revenues within 3 years Reserves1: 76.7 Bcf 3P / 39 Bcf 2P / 1.5 Bcf 1P Reserves = US$750m+ revenues at current UK

gas prices 597 Bcf 2C resource1; upside potential

Development plan in place Technical validation / reservoir performance >0.8 MMscf/d p/well; capacity to flow >1 MMscf/d Proof of concept via electricity from CBM

Two stage development strategy 10+ wells & compression plant for 35 MMscf/d Followed by additional 25+ wells

Planning application under appeal via Scottish Government; process expected to conclude 1H14

First gas sales expected in 2015 GSA with SSE Energy; up to 10 BCF / year Market pricing and no minimum delivery

Good gas flows from early appraisal wells >0.2 MMscf/d - short single seam section

Pilot production & testing planned for 2014

PEDL 133, AIRTH, SCOTLAND

PEDL 159, SOLWAY, SCOTLAND

1 As per Netherland, Sewell & Associate, Inc.

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Indonesia• South Sumatra play: 2 PSCs, 1,291 km2

• 50% of Muralim PSC; 45% Tanjung Enim PSC; operator of both

• Focus on establishing commerciality –commitment drilling and secure off-take

QUALITY ASSETS – INTERNATIONAL OPTIONALITY VIA PRIORITISATION

China• 1 Shale PSC (approvals underway); 720 km2

• 49% and operator; reduced to 24% via JV

• Substantial carry in initial work program

• Seek other shale gas opportunities

Australia• 7 licences in NSW (1 subject to approval); total

25,800 km2

• “Care and maintenance” - preserve licencespending regulatory clarity and certainty

A sizeable exploration portfolio in locations with the right dynamics for unconventional gas

Minimal commitments; low-cost to maintain over next 12 months

Provides future optionality by taking a prioritised, focused approach to international portfolio

Non-core assets = potential incremental cash

Non-core interests• 4 licences in continental Europe• 2 licences in East Kalimantan Indonesia• 1 licence in India• Non-strategic licences in UK and Australia• Seek exits, sales or farm-outs• Cash or optionality with no capital outlay• 1 licence sold in China – A$22 million• 1 licence sold (in part) in UK – A$0.7 million• 1 licence sold in Australia – up to A$0.5 million

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Key Activities / Value DriversFarm-out of shale acreage (GDF-Suez as first major shale farm-in partner)

Establish carried interest in sizeable shale-focused work programs

FOCUSED PATH TO VALUE CREATION

12 – 24 Months 24 Months+

SHALE FUNDINGCBM PLANNING

SHALE EXPLORATION +

CBM MONETISATION

Key Activities / Value DriversShale exploration / appraisal

PEDL 133 (Scotland) regulatory planning determination leading to full development

PEDL 159 (Scotland / England) pilot wells and commercialisation

REALISE OPTION VALUE

Key Activities / Value Drivers“Embedded” option value in China, Indonesia and Australia

Ongoing program to rationalise portfolio and farm-out / exit non-core eg: Liulinsale; PEL 461 sale

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Share Price

SUCCESSFUL RESTRUCTURING AND RECAPITALISATION

1. inclusive of US$12m to be received from GDF on completion of farm-in

Company Restructure Announced

• U.K. Strategic focus

• Corporate restructure

• Substantial cost reduction

• Divestments / strategic partnerships / farm-outs

Asset Sale - China

• $22 million sale ofLiulin CSG Project

• Completed in Sept 2013

Capital Raising

• $20.7 million fresh equity capital raised

Major U.K. Farm-in

• GDF Suez farm-in

Placement / entitlement price

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Current Market Cap $140 m

Current Net Cash1 $37 m

Enterprise Value $103 m

ARE THESE DEVELOPMENTS PRICED-IN?

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KEY MESSAGES – AN ATTRACTIVE INVESTMENT

SECTOR EXPOSURE

QUALITY ASSETS

CLEAR PATH TO VALUE

DELIVERY CAPABILITY

ATTRACTIVE VALUE

Unconventional gas is an exciting sector to invest in

Large position within highly sought after UK shale and CBM unconventional gas plays

Clear pathway to value: shale exploration and CBM development; secured a major farm-out

Restructure complete: streamlined and refocused management and team; world-class partner in U.K Shale

Potential to benefit from near-term activity and re-rating of asset values in line with peers

Gas is the fastest major fuel; expected to overtake coal by 2025Unconventional gas resources are larger than conventional natural gas resourcesUnconventional gas has changed the energy balance in North America / Australia alreadyUK Government policy now clear and supportive – this is the next big frontier

Large asset base in all the right play-zones, comparable with other companiesOne of UK’s top shale portfolios – enormous potentialLonger-term option value inherent in low-cost Australian, Indonesian and Chinese assets

GDF-Suez farm-in to certain U.K. shale licences – provides cash to Dart and funds programAirth project with attractive GSA in place, ready for development once planning obtainedOngoing non-core assets sales / farm-outs / exits

Managed by an experienced team with track record and capabilityBusiness now substantially restructured: focus and reduced cost baseGDF-Suez as partner in U.K. shale

Dart is one of the few listed companies offering exposure to UK shale

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2010: acquired by Exxon for US$41bn

2010: 2nd largest US producer; CNOOC US$2.2bn strategic 

investor

2010: A$3.5bn acquisition by Shell / 

CNPC

NORTH AMERICA SHALE

AUSTRALIACBM

2000’s

EUROPEAN UNCONVENTIONALS

2009: A$5.3bn acquisition by BG 

Group

2008: A$8bn CBM‐LNG JV with 

ConocoPhillips

VALUE UPSIDE: LONG‐TERM INDUSTRY POTENTIAL

2010: acquired by Royal Dutch Shell for US$4.7bn

2000’s 2012 

Source: Reuters

2013: up to £160m for 25% stake in a license by Centrica

2013: GDF‐Suez farm‐in, US$39m for 25% stake in 13 licences

QUESTIONS?

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CONTACT INFORMATION.

CONTACTS:

John McGoldrick, Chief Executive OfficerJMcGoldrick@dartgas.com

Eytan Uliel, Chief Financial OfficerEUliel@dartgas.com

Dart Energy Limited

Singapore (Head Office)152 Beach Road, #19‐03/04 The Gateway EastSingapore 189721Tel: +65 6508 9840Fax: +65 6294 6904

www.dartgas.com

Australia (Registered Office)Level 9, Waterfront Place, 1 Eagle Street, Brisbane Qld 4000, AustraliaGPO Box 3120, Brisbane Qld 4001 Tel: +61 7 3149 2100Fax: +61 7 3149 2101

Stirling, Scotland, United KingdomLaurel Hill Business ParkPolmaise Road, StirlingFK7 9JQTel: +44 333 800 2000Fax: +44 1786 447868