Dart Energy One2One Investor Presentation - Proactive Investors

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Dart Energy One2One Investor Presentation - Proactive Investors

Dart Energy Limited

(ASX: DTE)

Developing Global Unconventional Gas

Proactive Investor

ONe2One Hydrocarbon Investor Forum

John McGoldrick – Chief Executive Officer

Eytan Uliel – Chief Commercial Officer

23 August 2012

www.dartenergy.com.au


IMPORTANT NOTICE.

This presentation has been prepared by Dart Energy Limited (“Dart” or the "Company"). By viewing all or part of this presentation, you agree to maintain

confidentiality regarding the information disclosed in this presentation, unless such information is otherwise publicly available. Any failure to comply with

these restrictions may constitute a violation of applicable securities laws.

This presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe

for any securities, nor should it or any part of it form the basis of, or be relied in any connection with, any contract or commitment whatsoever.

The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and

no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. None of

the Company, Dart Energy Limited or any of their respective affiliates, advisers or representatives accept any liability whatsoever (in negligence or otherwise)

for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in

connection with this presentation.

This presentation includes forward-looking statements. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect“, “plan”

and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those

regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and

objectives relating to the Company's business and services) are forward-looking statements. Such forward-looking statements involve known and unknown

risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different

from results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as at the

date of this presentation. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future

or likely performance of the Company. Past performance is not necessarily indicative of future performance. The forecast financial performance of the

Company is not guaranteed. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current views of the

Company on future events. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions, except as required by

law, to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events,

conditions or circumstances on which any such statement is based.

Neither this presentation nor any copy or portion of it may be sent or taken, transmitted or distributed, directly or indirectly, into the United States, Japan,

Australia, Canada or any other jurisdiction which prohibits the same. The securities have not been, and will not be, registered under the U.S. Securities Act of

1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States or elsewhere, and the securities may not

be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the

Securities Act and applicable state or local securities laws. This presentation is not for distribution in, nor does it constitute an offer for sale of securities in

the United States. The Company does not intend to conduct a public offering of its securities in the United States.

This presentation may not be forwarded or distributed to any other person and may not be copied or reproduced in any manner. Failure to comply with this

directive may violate applicable laws.

2


DART ENERGY LIMITED -

DEVELOPING GLOBAL UNCONVENTIONAL GAS.

AUSTRALIA / CHINA / INDIA / INDONESIA / UNITED KINGDOM / POLAND / BELGIUM / GERMANY


WHAT ARE “UNCONVENTIONALS”?

Coal Bed Methane Shale gas Tight gas

Gas is adsorbed onto the Gas is “trapped” within Gas trapped in impermeable

surface of the coal the shale rock hard rocks or sands

CBM and shale gas is the same end product as conventional

natural gas

Difference is source rock from which natural gas is produced

Drilling techniques and principles of well completions are

similar to those used in the conventional oil and gas industry

Advances in horizontal drilling and hydraulic fracturing make

CBM and shale gas economically competitive

Conventional natural gas

Gas exists in a free state in

the spaces between the sands

4


HOW IS IT EXTRACTED?

Typical

Depth

500m –

1,500m

Coal Bed Methane (CBM)

Water is removed from the

coalbeds (“dewatering”),

lowering the pressure in the

coals and the gas is “desorbed”

Depth

>2,500m

Shale gas

Water, sand and chemicals are

injected into the rock at high

pressures (“fraccing”) to crack

the rock and liberate the gas

5


“UNCONVENTIONALS” – A TRANSFORMATIVE, GLOBAL ENERGY SOURCE.

CBM and Shale transformed the energy landscape in North America and Australia

Europe and Asia have significant unconventional gas resources

The long-term sector dynamics are excellent – Dart is well placed

Europe

3,478 Tcf 1,2

North America

2,670 Tcf 1

China

2,519 Tcf 1

North America Case Study

• Most advanced in CBM and

shale gas development

• Over 20-year history

• 23% of US natural gas in 2010

accounted for by shale gas 4

Legend:

India

344 Tcf 1 Indonesia

1,440 Tcf 1

Australia

1,128 Tcf 1,3

Australia Case Study

• Advanced CBM development in

Queensland; early stage

exploration/appraisal outside

QLD (including NSW)

• 70% of Queensland’s gas

supplied by CBM

• 4 th largest LNG exporter

• Expected to be the largest in


CORPORATE HISTORY.

First 2 years: establish resource base in attractive markets; establish capabilities

Next 18 months: rapid commercialisation – initial developments and first cashflow

At Dart Energy’s listing 1 :

2010 OGIP: 4.3 Tcf

2010 2C: 0.3 Tcf 3

2010 2P: Nil

CBM only

Operations in:

July 2012 1 :

OGIP: 50.3 Tcf (CBM); 76.0

Tcf (Shale)

Prospective: 14.8 Tcf (CBM);

0.4 Tcf (Shale)

2C: 5.4 Tcf

3P/2P: 140 Bcf / 45 Bcf

CBM, Shale and CMM

Operations in:

Sources: All Resources and Reserves reported are based on NSAI and MHA Petroleum Consultants’ reports. 2010 figures are as reported in Dart Energy Limited and Arrow Energy

Limited’s Demerger Scheme Booklet of 7 Jun 2010

Notes:

1 Comprising Dart Energy’s international (non-Australian) portfolio

2 Dart Energy Limited acquired 10% of Composite Energy Limited on 3 September 2010 and acquired the remaining 90% which it did not own on 28 February 2011

7


DART ENERGY TODAY.

EUROPE SHALE

EUROPE CBM

ASIA CBM

ASIA SHALE

1m acres 76 Tcf GIP (1)

1.7m acres 13.8 Tcf GIP

0.9m acres 4.1 Tcf GIP

0.2m acres 76 Tcf GIP (1)

Early exploration

Drilling activity in proximity

Large GIP

Early development

Exploration / Appraisal upside

Reserves: 120 Bcf (3P)

Large Contingent 4.7 Tcf (2C)

Early development

Exploration / Appraisal upside

Reserves: 20 Bcf (3P)

Large Prospective: 2 Tcf

First mover advantage in

China

Carried work program

United Kingdom - 5 principal areas (32 Assets)

Belgium - 1 Asset (CBM JV)

Germany - 2 Assets 3

Poland - 3 Assets and 2 Assets under option

SUMMARY

Assets / projects CBM and Shale projects across over 20 basins 3

8.4 million acres (>34,000 km 2 )

Resources /

Reserves (net)

Business

Commercial Options

OGIP: 50.3 Tcf (CBM); 76.0 Tcf (Shale) 1

2C: 5.4 Tcf (CBM); Prospective: 14.8 Tcf (CBM) / 0.4 Tcf (Shale)

Reserves: 45 Bcf (2P - CBM); 140 Bcf (3P - CBM)

9 countries; local / regional capabilities

180 staff; number of former Arrow Energy staff

C. A$77m cash at end June

Electricity generation commenced in the U.K.

Compression facilities installed in China

2 GSAs in place; 1 MOU signed; others being negotiated

All resources and reserves are on net basis and have been independently certified by NSAI (except Liulin, China which has been

certified by MHA Petroleum Consultants)

Notes:

1 Comprise of 44 licenses (including 17 with shale potential) and 2 CMM projects. Excludes licenses under relinquishment

2 Shale OGIP potential best estimates based on NSAI’s independent assessment (May 2012)

3 Options for the 2 assets have been exercised and are pending completion

China - 2 Asset

Office Location: Beijing

India - 2 Assets and 2 CMM projects

Office Location: New Delhi

Head Office - Singapore

Indonesia - 3 Assets

Office Location: Jakarta

Australia - 7 Assets

Office Locations: Sydney, Brisbane

AUSTRALIA CBM

5.8m acres

32.5 Tcf GIP

Early appraisal

Exploration / Appraisal upside

Large Prospective: 12.3 Tcf

8


TARGETTING “GAS HUNGRY” MARKETS.

DART ENERGY

MARKETS

Long-term Supply

Deficits 1

Large Resource

Potential 2

21.4

+

-15.6Tcf -5.3Tcf -4.3Tcf -2.4Tcf

12.3

5.8

7.0

7.1

4.3

2.8

1.9

~3,500Tcf ~2,500Tcf ~350Tcf ~1,450Tcf

Attractive Gas

Prices

Unconventional Gas

in Early Stages

Favourable Market

Considerations

Demand

Supply

US$8.0 - US$11.0/mcf US$6.0 - US$8.0/mcf US$5.0 - US$7.5/mcf US$5.0 - US$8.0/ mcf

Exploration / appraisal

• Domestic gas production in

decline

• Security of supply concerns

(reliance on Russian and

Norway imports)

• Large CBM and shale gas

resources

• Stringent “green”

regulations likely to

increase gas demand

Some production; early

stage exploration /

appraisal

• Largest gas market in Asia 3

• 2 nd largest energy

consumer globally 3

• Largest unconventional gas

resource globally 3

• Govt’s intention to fast

track development of

unconventional gas as part

of 12 th 5-Year Plan

Early stage exploration /

appraisal; some (small)

production

• 3 rd largest gas market in

Asia 3

• 4 th largest energy

consumer globally 3

• 5 th largest LNG importer

globally 3

• Large CBM resources

• Shale gas on the agenda

Early stage exploration /

appraisal

• Largest holder of proven

natural gas reserves in

Asia-Pacific 3

• 5 th largest CBM reserves

globally 3

• 2 nd largest LNG exporter

globally in 2010 3

• Govt seeking to fast track

CBM/shale development

9

Notes:

1 Projected demand less domestic supply in 2020; DataFusion Associates projections

2 Includes CBM and shale gas resources (where available). Source: DataFusion Associates

3 Based on BP Statistical Review of World Energy June 2011


A SIMPLE MODEL BUSINESS MODEL.

Strategy

RAPID RESOURCE MATURATION + RAPID COMMERCIALISATION

Life-cycle

phase

IDENTIFY AND ACCESS

(1-4 years)

APPRAISE

(2-5 years)

COMMERCIAL

PRODUCTION

(>10 years)

Success

factors

High quality prospects

Attractive gas markets

Diversified resource base

Partner relationships

Diagnostic know-how

Execution capability

Disciplined resource

maturation

Less capital intensive

Ability to market gas

quickly

Accessible markets

Favourable margins in

target markets

Dart progress

to-date

Large resource base in

attractive markets

Diversified portfolio

Established strong

relationships

Attractive pipeline

Large contingent

resources; Initial reserves

certified (independently)

5 projects near

development

Drilling across portfolio

Best-in-class team

2 GSAs in place

Early pilot-to-power

projects underway

Visibility on production

Other commercialisation

options being developed

10


UNIQUE GLOBAL PORTFOLIO APPROACH ADDS VALUE.

RISK MITIGATION.

CAPITAL

ALLOCATION.

RESOURCE

OPTIMISATION.

Not reliant on any single asset, country, basin, partner or regime to

meet targets and deliver value

Ability to reallocate funds across the portfolio to optimise returns by

progressing projects that provide highest risk adjusted returns

Allows for efficiency and productivity in use of people and resources

Global advantage

Local application

Staff – recruit, train and retain the best

Best practice, learning and technology

transfer

Business development and credibility

Global contracts and economies of scale

International certifications

Local staffing, contractors and suppliers

Fit for purpose procurement and

manufacturing

Land and community management

Gas sales and commercialisation

Operational efficiency

11


A HIGH QUALITY, GLOBAL COAL BED METHANE PORTFOLIO.

500

450

PEDL 133

400

350

Liulin PSC

300

Electrosteel

250

200

Chester Basin

Muralim

PSC

Assam

Satpura

Tanjung

Enim PSC

PEDL 159

Sangatta

West PSC

150

Staffordshire

PEDL

161 & 163

East Midlands

USCB

100

50

0

Milejow

Chelm

0

EXPLORATION

100 CORE DRILLING & 200 PILOT TESTING 300 INITIAL 400 EARLY 500

FULL

600

TESTING

DEVELOPMENT

PRODUCTION

PRODUCTION

OGIP

Prospective

2C

3P

2P

10,000 Bcf

8,000 Bcf

4,000 Bcf

2,000 Bcf

1,000 Bcf

500 Bcf

250 Bcf

100 Bcf

12


AN EARLY-STAGE, HIGH POTENTENTIAL SHALE GAS PORTFOLIO.

200

Xiushan*

150

Milejow

100

Chester Basin

Saxon I West

& Saxon II

Midland Valley

50

0

Gainsborough

Trough

(East Midlands)

0 EXPLORATION 50 CORE DRILLING & 100 PILOT TESTING 150 INITIAL 200 PRODUCTION 250

TESTING

DEVELOPMENT

* Dart internal estimates

OGIP

Prospective

40,000 Bcf

30,000 Bcf

20,000 Bcf

10,000 Bcf

5,000 Bcf

2,000 Bcf

1,000 Bcf

200 Bcf

13


DELIVERING VALUE IN THE NEXT 18 MONTHS.

Key projects in each geography progressing to production and income

Airth, PEDL133

2 Pilot wells, good early gas flows

SUMMARY

# Wells 35-45

Potential Field EUR

40-50Bcf

Contingent Resource (net):

594 Bcf (2C)

2P Reserves:

38 Bcf

3P Reserves:

72 Bcf

Based on c. 60km 2 initial development area

United Kingdom

Coal Mine Methane

SUMMARY

# Wells 3

Dart earns service fee from degassing activities

Tanjung Enim // Muralim

3 Pilot wells dewatering

SUMMARY

# Wells 160-180

Potential Field EUR

150-200 Bcf

Contingent Resource (net): 256 Bcf (2C)

Based on c. 60km 2 initial development area

India

Fullerton Cove

China

1 Pilot well approved

SUMMARY

Indonesia

# Wells 100 - 150

Potential Field EUR

Contingent Resource (net):

100 - 150 Bcf

542 Bcf (2C)

Note: This reflects a conceptual framework of a

potential initial development

Liulin

4 Pilot wells, good gas flows

SUMMARY

# Wells 30-35

Potential Field EUR

30-40 Bcf

Contingent Resource (net): 88 Bcf (2C)

Reserves:

Australia

Based on c. 30km 2 initial development area

Sangatta West

4 Pilot wells dewatering

SUMMARY

29 Bcf (2P) / 49Bcf (3P)

# Wells 110-130

Potential Field EUR

Contingent Resource (net):

3P Reserves:

125-150 Bcf

273 Bcf (2C)

38 Bcf

Based on c. 65km 2 initial development area

14


TRANSITIONING INTO A PRODUCTION COMPANY IN THE MEDIUM TERM.

Base projects underpin near term revenue and proof of model

Portfolio builds to materiality 2015 onwards

EBITDA Margin:

60% - 70%

15


LEVERAGED TO THE STRONG MACRO GAS STORY.

1

2

3

4

Gas is increasingly becoming the primary fuel globally;

its share in the energy mix is expected to catch up with oil by 2040 1,2

Technically recoverable unconventional gas resources

are larger than conventional natural gas resources 1

Dart Energy is a leading global unconventional

gas company with a large international asset base, managed by an

experienced team with a demonstrated track record of success

Near term value creation potential through focus on achieving

production and revenues at core projects

Notes:

1 DataFusion Associates

2 ExxonMobil report: 2012 The Outlook for Energy: A View to 2040

16


INDUSTRY PRESENTS A SUBSTANTIAL VALUE CREATION OPPORTUNITY.

NORTH AMERICA

SHALE

2010: acquired by

Exxon for US$41bn

2010: 2 nd largest US

producer; CNOOC

US$2bn+ strategic

investor

2010: acquired by

Royal Dutch Shell

for US$4.7bn

AUSTRALIA

CBM

2010: A$3.5bn

acquisition by Shell /

CNPC

2009: A$5.2bn

acquisition by BG

Group

2009: A$5bn CBM-

LNG JV with

ConocoPhillips

INTERNATIONAL

UNCONVENTIONALS

2000’s

2000’s

Europe Asia Global

2012

Source: Reuters

17


DART ENERGY LIMITED – SUMMARY.

1

2

3

A global portfolio of quality unconventional gas assets

• coal bed methane and shale gas

• growth regions of Asia and Europe

• Large certified resource / reserve position

• Markets with unsatisfied gas demand growth and advantaged pricing

Multiple projects across portfolio on-track, goal is to generate

first gas and revenues within 18 months

• Initial production / production results

• Early commercialisation schemes well advanced

• Migrate to larger-scale developments – GSAs in place

• Five-year ambition to become a significant producer / cash generating business

Board, executive and team with track record and delivery capability

18


CONTACT INFORMATION.

Dart Energy Limited

Singapore (Head Office)

152 Beach Road,

#19-01/04 The Gateway East

Singapore 189721

Tel: +65 6508 9840

Fax: +65 6294 6904

Australia (Registered Office)

Level 11, Waterfront Place

1 Eagle Street, Brisbane Queensland 4000

Tel: +61 7 3149 2100

Fax: +61 7 3149 2101

CONTACTS:

John McGoldrick,

Dart international Chief Executive Officer

JMcGoldrick@dartcbm.com

Robbert de Weijer

Dart Australia Chief Executive Officer

RdeWeijer@dartcbm.com

Eytan Uliel, Chief Commercial Officer

EUliel@dartcbm.com

Nathan Rayner, Chief Operating Officer

NRayner@dartcbm.com

Martin Cooper, Chief Financial Officer

MCooper@dartcbm.com

19

Country Offices

Australia (Registered Office)

Suite G2

64 Talavera Road

North Ryde, Sydney NSW 2113

Tel: +61 2 9146 6330

Fax: +61 2 8088 7140

Beijing, China

Tower 4 of Beijing International Centre

Suite 706, 7/F, No.38, East 3rd Ring Road North

Chaoyang District 100022 Beijing, P.R.China

Tel: +86 10 8587 0177

Fax: +86 10 8587 0167

New Delhi, India

804 - 805, Global Business Park

Tower B, 8th Floor MG Road

Gurgaon - 122002 (India)

Tel: +91 124 4990500

Fax: +91 124 4990501

Stirling, Scotland, United Kingdom

Laurel Hill Business Park

Polmaise Road, Stirling

FK7 9JQ

Tel: +44 333 800 2000

Fax: +44 1786 447868

Jakarta, Indonesia

Wisma Anugraha, (Petrosea Office)

1st Floor, JI. Taman Kemang, No.32B

Kemang Jakarta 12730, Indonesia

Tel: +62 21 719 8117

Fax: +62 21 718 2844


UNCONVENTIONAL GAS PRIMER.

AUSTRALIA / CHINA / INDIA / INDONESIA / UNITED KINGDOM / POLAND / BELGIUM / GERMANY


WHAT ARE “UNCONVENTIONALS”?

Coal Bed Methane Shale gas Tight gas

Gas is adsorbed onto the Gas is “trapped” within Gas trapped in impermeable

surface of the coal the shale rock hard rocks or sands

CBM and shale gas is the same end product as

conventional natural gas

Difference is source rock from which natural gas is

produced

Drilling techniques and principles of well completions are

similar to those used in the conventional oil and gas

industry

Advances in horizontal drilling and hydraulic fracturing

make CBM and shale gas economically competitive

Conventional natural gas

Gas exists in a free state in

the spaces between the sands

21


HOW IS IT EXTRACTED?

Typical

Depth

500m –

1,500m

Coal Bed Methane (CBM)

Water is removed from the

coalbeds (“dewatering”),

lowering the pressure in the

coals and the gas is “desorbed”

Depth

>2,500m

Shale gas

Water, sand and chemicals are

injected into the rock at high

pressures (“fraccing”) to crack

the rock and liberate the gas

22


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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

BASIC CBM WELL TYPES.

Vertical Lateral Multi-lateral

Lowest cost

Fastest completion time

Effective for thick coal seams

Used when coal seams are thin

Horizontal drilling techniques

High precision required

Minimise surface footprint

Fastest gas drainage

Most ‘hole in coal’

Cross-Section View

45m to

175m

Radius Bend

COAL SEAM

COAL SEAM

60m

Typical wellhead

• Fully automated pump and

reservoir control

• Optimises production; reduces

field maintenance

Lateral Collars

Typical CBM rig

• Conventional mineral rig

• Truck mounted

• In-seam steering technology

Vertical Collars

Well design decision to optimise economics

23


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A TYPICAL SHALE WELL.

Deep vertical well with one or more laterals

Main difference is “fraccing” - pumping water

and sand (>98%) and additives (


AN UNCONVENTIONAL GAS WELL PRODUCTION PROFILE.

Nature of the source

rock results in a

fundamentally

different production

profile

Significant technical

and commercial

impact

25


UNCONVENTIONAL GAS PROJECT LIFE CYCLE.

Identification

1 - 3 yrs

Explore

1 - 3 yrs

Full Scale

Development 1

Appraise 1

20+ yrs 1 - 2 yrs

Initial

Development 1

2 - 3 yrs

Note:

1 Once a well has been drilled and is of no further use, it will be abandoned. The

process includes safely sealing the well and rehabilitating the surrounding area, in

accordance with licence terms and applicable local regulations providing for

rehabilitation and industry best practice

26


RESPONSIBLE ENVIRONMENTAL MANAGEMENT.

1

LAND USE

CONCERNS

Wells occupy large surface area?

Land cannot be used for other uses?

Unsightly and disrupts wildlife habitats?

INDUSTRY FACTS

“Nuisance” / drilling period typically 98% water; < 2% “additives” (common in

household products)

Used for shale; limited use in CBM

Strictly regulated

Notes

1. Marcellus Shale – Water Treatment Options Worth Considering, www.ventureengr.com

2.. Department of Energy & Climate Change (U.K.) Report “Shale gas, NW England earthquakes and UK regulation”, 8 May 2012

27 STRICTLY PRIVATE & CONFIDENTIAL


END. THANK YOU.

AUSTRALIA / CHINA / INDIA / INDONESIA / UNITED KINGDOM / POLAND / BELGIUM / GERMANY


Dart Energy Limited

(ASX: DTE)

Developing Global Unconventional Gas

Proactive Investor

ONe2One Hydrocarbon Investor Forum

John McGoldrick – Chief Executive Officer

Eytan Uliel – Chief Commercial Officer

23 August 2012

www.dartenergy.com.au


IMPORTANT NOTICE.

This presentation has been prepared by Dart Energy Limited (“Dart” or the "Company"). By viewing all or part of this presentation, you agree to maintain

confidentiality regarding the information disclosed in this presentation, unless such information is otherwise publicly available. Any failure to comply with

these restrictions may constitute a violation of applicable securities laws.

This presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe

for any securities, nor should it or any part of it form the basis of, or be relied in any connection with, any contract or commitment whatsoever.

The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and

no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. None of

the Company, Dart Energy Limited or any of their respective affiliates, advisers or representatives accept any liability whatsoever (in negligence or otherwise)

for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in

connection with this presentation.

This presentation includes forward-looking statements. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect“, “plan”

and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those

regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and

objectives relating to the Company's business and services) are forward-looking statements. Such forward-looking statements involve known and unknown

risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different

from results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as at the

date of this presentation. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future

or likely performance of the Company. Past performance is not necessarily indicative of future performance. The forecast financial performance of the

Company is not guaranteed. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current views of the

Company on future events. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions, except as required by

law, to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events,

conditions or circumstances on which any such statement is based.

Neither this presentation nor any copy or portion of it may be sent or taken, transmitted or distributed, directly or indirectly, into the United States, Japan,

Australia, Canada or any other jurisdiction which prohibits the same. The securities have not been, and will not be, registered under the U.S. Securities Act of

1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States or elsewhere, and the securities may not

be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the

Securities Act and applicable state or local securities laws. This presentation is not for distribution in, nor does it constitute an offer for sale of securities in

the United States. The Company does not intend to conduct a public offering of its securities in the United States.

This presentation may not be forwarded or distributed to any other person and may not be copied or reproduced in any manner. Failure to comply with this

directive may violate applicable laws.

2


DART ENERGY LIMITED -

DEVELOPING GLOBAL UNCONVENTIONAL GAS.

AUSTRALIA / CHINA / INDIA / INDONESIA / UNITED KINGDOM / POLAND / BELGIUM / GERMANY


WHAT ARE “UNCONVENTIONALS”?

Coal Bed Methane Shale gas Tight gas

Gas is adsorbed onto the Gas is “trapped” within Gas trapped in impermeable

surface of the coal the shale rock hard rocks or sands

CBM and shale gas is the same end product as conventional

natural gas

Difference is source rock from which natural gas is produced

Drilling techniques and principles of well completions are

similar to those used in the conventional oil and gas industry

Advances in horizontal drilling and hydraulic fracturing make

CBM and shale gas economically competitive

Conventional natural gas

Gas exists in a free state in

the spaces between the sands

4


HOW IS IT EXTRACTED?

Typical

Depth

500m –

1,500m

Coal Bed Methane (CBM)

Water is removed from the

coalbeds (“dewatering”),

lowering the pressure in the

coals and the gas is “desorbed”

Depth

>2,500m

Shale gas

Water, sand and chemicals are

injected into the rock at high

pressures (“fraccing”) to crack

the rock and liberate the gas

5


“UNCONVENTIONALS” – A TRANSFORMATIVE, GLOBAL ENERGY SOURCE.

CBM and Shale transformed the energy landscape in North America and Australia

Europe and Asia have significant unconventional gas resources

The long-term sector dynamics are excellent – Dart is well placed

Europe

3,478 Tcf 1,2

North America

2,670 Tcf 1

China

2,519 Tcf 1

North America Case Study

• Most advanced in CBM and

shale gas development

• Over 20-year history

• 23% of US natural gas in 2010

accounted for by shale gas 4

Legend:

India

344 Tcf 1 Indonesia

1,440 Tcf 1

Australia

1,128 Tcf 1,3

Australia Case Study

• Advanced CBM development in

Queensland; early stage

exploration/appraisal outside

QLD (including NSW)

• 70% of Queensland’s gas

supplied by CBM

• 4 th largest LNG exporter

• Expected to be the largest in


CORPORATE HISTORY.

First 2 years: establish resource base in attractive markets; establish capabilities

Next 18 months: rapid commercialisation – initial developments and first cashflow

At Dart Energy’s listing 1 :

2010 OGIP: 4.3 Tcf

2010 2C: 0.3 Tcf 3

2010 2P: Nil

CBM only

Operations in:

July 2012 1 :

OGIP: 50.3 Tcf (CBM); 76.0

Tcf (Shale)

Prospective: 14.8 Tcf (CBM);

0.4 Tcf (Shale)

2C: 5.4 Tcf

3P/2P: 140 Bcf / 45 Bcf

CBM, Shale and CMM

Operations in:

Sources: All Resources and Reserves reported are based on NSAI and MHA Petroleum Consultants’ reports. 2010 figures are as reported in Dart Energy Limited and Arrow Energy

Limited’s Demerger Scheme Booklet of 7 Jun 2010

Notes:

1 Comprising Dart Energy’s international (non-Australian) portfolio

2 Dart Energy Limited acquired 10% of Composite Energy Limited on 3 September 2010 and acquired the remaining 90% which it did not own on 28 February 2011

7


DART ENERGY TODAY.

EUROPE SHALE

EUROPE CBM

ASIA CBM

ASIA SHALE

1m acres 76 Tcf GIP (1)

1.7m acres 13.8 Tcf GIP

0.9m acres 4.1 Tcf GIP

0.2m acres 76 Tcf GIP (1)

Early exploration

Drilling activity in proximity

Large GIP

Early development

Exploration / Appraisal upside

Reserves: 120 Bcf (3P)

Large Contingent 4.7 Tcf (2C)

Early development

Exploration / Appraisal upside

Reserves: 20 Bcf (3P)

Large Prospective: 2 Tcf

First mover advantage in

China

Carried work program

United Kingdom - 5 principal areas (32 Assets)

Belgium - 1 Asset (CBM JV)

Germany - 2 Assets 3

Poland - 3 Assets and 2 Assets under option

SUMMARY

Assets / projects CBM and Shale projects across over 20 basins 3

8.4 million acres (>34,000 km 2 )

Resources /

Reserves (net)

Business

Commercial Options

OGIP: 50.3 Tcf (CBM); 76.0 Tcf (Shale) 1

2C: 5.4 Tcf (CBM); Prospective: 14.8 Tcf (CBM) / 0.4 Tcf (Shale)

Reserves: 45 Bcf (2P - CBM); 140 Bcf (3P - CBM)

9 countries; local / regional capabilities

180 staff; number of former Arrow Energy staff

C. A$77m cash at end June

Electricity generation commenced in the U.K.

Compression facilities installed in China

2 GSAs in place; 1 MOU signed; others being negotiated

All resources and reserves are on net basis and have been independently certified by NSAI (except Liulin, China which has been

certified by MHA Petroleum Consultants)

Notes:

1 Comprise of 44 licenses (including 17 with shale potential) and 2 CMM projects. Excludes licenses under relinquishment

2 Shale OGIP potential best estimates based on NSAI’s independent assessment (May 2012)

3 Options for the 2 assets have been exercised and are pending completion

China - 2 Asset

Office Location: Beijing

India - 2 Assets and 2 CMM projects

Office Location: New Delhi

Head Office - Singapore

Indonesia - 3 Assets

Office Location: Jakarta

Australia - 7 Assets

Office Locations: Sydney, Brisbane

AUSTRALIA CBM

5.8m acres

32.5 Tcf GIP

Early appraisal

Exploration / Appraisal upside

Large Prospective: 12.3 Tcf

8


TARGETTING “GAS HUNGRY” MARKETS.

DART ENERGY

MARKETS

Long-term Supply

Deficits 1

Large Resource

Potential 2

21.4

+

-15.6Tcf -5.3Tcf -4.3Tcf -2.4Tcf

12.3

5.8

7.0

7.1

4.3

2.8

1.9

~3,500Tcf ~2,500Tcf ~350Tcf ~1,450Tcf

Attractive Gas

Prices

Unconventional Gas

in Early Stages

Favourable Market

Considerations

Demand

Supply

US$8.0 - US$11.0/mcf US$6.0 - US$8.0/mcf US$5.0 - US$7.5/mcf US$5.0 - US$8.0/ mcf

Exploration / appraisal

• Domestic gas production in

decline

• Security of supply concerns

(reliance on Russian and

Norway imports)

• Large CBM and shale gas

resources

• Stringent “green”

regulations likely to

increase gas demand

Some production; early

stage exploration /

appraisal

• Largest gas market in Asia 3

• 2 nd largest energy

consumer globally 3

• Largest unconventional gas

resource globally 3

• Govt’s intention to fast

track development of

unconventional gas as part

of 12 th 5-Year Plan

Early stage exploration /

appraisal; some (small)

production

• 3 rd largest gas market in

Asia 3

• 4 th largest energy

consumer globally 3

• 5 th largest LNG importer

globally 3

• Large CBM resources

• Shale gas on the agenda

Early stage exploration /

appraisal

• Largest holder of proven

natural gas reserves in

Asia-Pacific 3

• 5 th largest CBM reserves

globally 3

• 2 nd largest LNG exporter

globally in 2010 3

• Govt seeking to fast track

CBM/shale development

9

Notes:

1 Projected demand less domestic supply in 2020; DataFusion Associates projections

2 Includes CBM and shale gas resources (where available). Source: DataFusion Associates

3 Based on BP Statistical Review of World Energy June 2011


A SIMPLE MODEL BUSINESS MODEL.

Strategy

RAPID RESOURCE MATURATION + RAPID COMMERCIALISATION

Life-cycle

phase

IDENTIFY AND ACCESS

(1-4 years)

APPRAISE

(2-5 years)

COMMERCIAL

PRODUCTION

(>10 years)

Success

factors

High quality prospects

Attractive gas markets

Diversified resource base

Partner relationships

Diagnostic know-how

Execution capability

Disciplined resource

maturation

Less capital intensive

Ability to market gas

quickly

Accessible markets

Favourable margins in

target markets

Dart progress

to-date

Large resource base in

attractive markets

Diversified portfolio

Established strong

relationships

Attractive pipeline

Large contingent

resources; Initial reserves

certified (independently)

5 projects near

development

Drilling across portfolio

Best-in-class team

2 GSAs in place

Early pilot-to-power

projects underway

Visibility on production

Other commercialisation

options being developed

10


UNIQUE GLOBAL PORTFOLIO APPROACH ADDS VALUE.

RISK MITIGATION.

CAPITAL

ALLOCATION.

RESOURCE

OPTIMISATION.

Not reliant on any single asset, country, basin, partner or regime to

meet targets and deliver value

Ability to reallocate funds across the portfolio to optimise returns by

progressing projects that provide highest risk adjusted returns

Allows for efficiency and productivity in use of people and resources

Global advantage

Local application

Staff – recruit, train and retain the best

Best practice, learning and technology

transfer

Business development and credibility

Global contracts and economies of scale

International certifications

Local staffing, contractors and suppliers

Fit for purpose procurement and

manufacturing

Land and community management

Gas sales and commercialisation

Operational efficiency

11


A HIGH QUALITY, GLOBAL COAL BED METHANE PORTFOLIO.

500

450

PEDL 133

400

350

Liulin PSC

300

Electrosteel

250

200

Chester Basin

Muralim

PSC

Assam

Satpura

Tanjung

Enim PSC

PEDL 159

Sangatta

West PSC

150

Staffordshire

PEDL

161 & 163

East Midlands

USCB

100

50

0

Milejow

Chelm

0

EXPLORATION

100 CORE DRILLING & 200 PILOT TESTING 300 INITIAL 400 EARLY 500

FULL

600

TESTING

DEVELOPMENT

PRODUCTION

PRODUCTION

OGIP

Prospective

2C

3P

2P

10,000 Bcf

8,000 Bcf

4,000 Bcf

2,000 Bcf

1,000 Bcf

500 Bcf

250 Bcf

100 Bcf

12


AN EARLY-STAGE, HIGH POTENTENTIAL SHALE GAS PORTFOLIO.

200

Xiushan*

150

Milejow

100

Chester Basin

Saxon I West

& Saxon II

Midland Valley

50

0

Gainsborough

Trough

(East Midlands)

0 EXPLORATION 50 CORE DRILLING & 100 PILOT TESTING 150 INITIAL 200 PRODUCTION 250

TESTING

DEVELOPMENT

* Dart internal estimates

OGIP

Prospective

40,000 Bcf

30,000 Bcf

20,000 Bcf

10,000 Bcf

5,000 Bcf

2,000 Bcf

1,000 Bcf

200 Bcf

13


DELIVERING VALUE IN THE NEXT 18 MONTHS.

Key projects in each geography progressing to production and income

Airth, PEDL133

2 Pilot wells, good early gas flows

SUMMARY

# Wells 35-45

Potential Field EUR

40-50Bcf

Contingent Resource (net):

594 Bcf (2C)

2P Reserves:

38 Bcf

3P Reserves:

72 Bcf

Based on c. 60km 2 initial development area

United Kingdom

Coal Mine Methane

SUMMARY

# Wells 3

Dart earns service fee from degassing activities

Tanjung Enim // Muralim

3 Pilot wells dewatering

SUMMARY

# Wells 160-180

Potential Field EUR

150-200 Bcf

Contingent Resource (net): 256 Bcf (2C)

Based on c. 60km 2 initial development area

India

Fullerton Cove

China

1 Pilot well approved

SUMMARY

Indonesia

# Wells 100 - 150

Potential Field EUR

Contingent Resource (net):

100 - 150 Bcf

542 Bcf (2C)

Note: This reflects a conceptual framework of a

potential initial development

Liulin

4 Pilot wells, good gas flows

SUMMARY

# Wells 30-35

Potential Field EUR

30-40 Bcf

Contingent Resource (net): 88 Bcf (2C)

Reserves:

Australia

Based on c. 30km 2 initial development area

Sangatta West

4 Pilot wells dewatering

SUMMARY

29 Bcf (2P) / 49Bcf (3P)

# Wells 110-130

Potential Field EUR

Contingent Resource (net):

3P Reserves:

125-150 Bcf

273 Bcf (2C)

38 Bcf

Based on c. 65km 2 initial development area

14


TRANSITIONING INTO A PRODUCTION COMPANY IN THE MEDIUM TERM.

Base projects underpin near term revenue and proof of model

Portfolio builds to materiality 2015 onwards

EBITDA Margin:

60% - 70%

15


LEVERAGED TO THE STRONG MACRO GAS STORY.

1

2

3

4

Gas is increasingly becoming the primary fuel globally;

its share in the energy mix is expected to catch up with oil by 2040 1,2

Technically recoverable unconventional gas resources

are larger than conventional natural gas resources 1

Dart Energy is a leading global unconventional

gas company with a large international asset base, managed by an

experienced team with a demonstrated track record of success

Near term value creation potential through focus on achieving

production and revenues at core projects

Notes:

1 DataFusion Associates

2 ExxonMobil report: 2012 The Outlook for Energy: A View to 2040

16


INDUSTRY PRESENTS A SUBSTANTIAL VALUE CREATION OPPORTUNITY.

NORTH AMERICA

SHALE

2010: acquired by

Exxon for US$41bn

2010: 2 nd largest US

producer; CNOOC

US$2bn+ strategic

investor

2010: acquired by

Royal Dutch Shell

for US$4.7bn

AUSTRALIA

CBM

2010: A$3.5bn

acquisition by Shell /

CNPC

2009: A$5.2bn

acquisition by BG

Group

2009: A$5bn CBM-

LNG JV with

ConocoPhillips

INTERNATIONAL

UNCONVENTIONALS

2000’s

2000’s

Europe Asia Global

2012

Source: Reuters

17


DART ENERGY LIMITED – SUMMARY.

1

2

3

A global portfolio of quality unconventional gas assets

• coal bed methane and shale gas

• growth regions of Asia and Europe

• Large certified resource / reserve position

• Markets with unsatisfied gas demand growth and advantaged pricing

Multiple projects across portfolio on-track, goal is to generate

first gas and revenues within 18 months

• Initial production / production results

• Early commercialisation schemes well advanced

• Migrate to larger-scale developments – GSAs in place

• Five-year ambition to become a significant producer / cash generating business

Board, executive and team with track record and delivery capability

18


CONTACT INFORMATION.

Dart Energy Limited

Singapore (Head Office)

152 Beach Road,

#19-01/04 The Gateway East

Singapore 189721

Tel: +65 6508 9840

Fax: +65 6294 6904

Australia (Registered Office)

Level 11, Waterfront Place

1 Eagle Street, Brisbane Queensland 4000

Tel: +61 7 3149 2100

Fax: +61 7 3149 2101

CONTACTS:

John McGoldrick,

Dart international Chief Executive Officer

JMcGoldrick@dartcbm.com

Robbert de Weijer

Dart Australia Chief Executive Officer

RdeWeijer@dartcbm.com

Eytan Uliel, Chief Commercial Officer

EUliel@dartcbm.com

Nathan Rayner, Chief Operating Officer

NRayner@dartcbm.com

Martin Cooper, Chief Financial Officer

MCooper@dartcbm.com

19

Country Offices

Australia (Registered Office)

Suite G2

64 Talavera Road

North Ryde, Sydney NSW 2113

Tel: +61 2 9146 6330

Fax: +61 2 8088 7140

Beijing, China

Tower 4 of Beijing International Centre

Suite 706, 7/F, No.38, East 3rd Ring Road North

Chaoyang District 100022 Beijing, P.R.China

Tel: +86 10 8587 0177

Fax: +86 10 8587 0167

New Delhi, India

804 - 805, Global Business Park

Tower B, 8th Floor MG Road

Gurgaon - 122002 (India)

Tel: +91 124 4990500

Fax: +91 124 4990501

Stirling, Scotland, United Kingdom

Laurel Hill Business Park

Polmaise Road, Stirling

FK7 9JQ

Tel: +44 333 800 2000

Fax: +44 1786 447868

Jakarta, Indonesia

Wisma Anugraha, (Petrosea Office)

1st Floor, JI. Taman Kemang, No.32B

Kemang Jakarta 12730, Indonesia

Tel: +62 21 719 8117

Fax: +62 21 718 2844


UNCONVENTIONAL GAS PRIMER.

AUSTRALIA / CHINA / INDIA / INDONESIA / UNITED KINGDOM / POLAND / BELGIUM / GERMANY


WHAT ARE “UNCONVENTIONALS”?

Coal Bed Methane Shale gas Tight gas

Gas is adsorbed onto the Gas is “trapped” within Gas trapped in impermeable

surface of the coal the shale rock hard rocks or sands

CBM and shale gas is the same end product as

conventional natural gas

Difference is source rock from which natural gas is

produced

Drilling techniques and principles of well completions are

similar to those used in the conventional oil and gas

industry

Advances in horizontal drilling and hydraulic fracturing

make CBM and shale gas economically competitive

Conventional natural gas

Gas exists in a free state in

the spaces between the sands

21


HOW IS IT EXTRACTED?

Typical

Depth

500m –

1,500m

Coal Bed Methane (CBM)

Water is removed from the

coalbeds (“dewatering”),

lowering the pressure in the

coals and the gas is “desorbed”

Depth

>2,500m

Shale gas

Water, sand and chemicals are

injected into the rock at high

pressures (“fraccing”) to crack

the rock and liberate the gas

22


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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

BASIC CBM WELL TYPES.

Vertical Lateral Multi-lateral

Lowest cost

Fastest completion time

Effective for thick coal seams

Used when coal seams are thin

Horizontal drilling techniques

High precision required

Minimise surface footprint

Fastest gas drainage

Most ‘hole in coal’

Cross-Section View

45m to

175m

Radius Bend

COAL SEAM

COAL SEAM

60m

Typical wellhead

• Fully automated pump and

reservoir control

• Optimises production; reduces

field maintenance

Lateral Collars

Typical CBM rig

• Conventional mineral rig

• Truck mounted

• In-seam steering technology

Vertical Collars

Well design decision to optimise economics

23


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A TYPICAL SHALE WELL.

Deep vertical well with one or more laterals

Main difference is “fraccing” - pumping water

and sand (>98%) and additives (


AN UNCONVENTIONAL GAS WELL PRODUCTION PROFILE.

Nature of the source

rock results in a

fundamentally

different production

profile

Significant technical

and commercial

impact

25


UNCONVENTIONAL GAS PROJECT LIFE CYCLE.

Identification

1 - 3 yrs

Explore

1 - 3 yrs

Full Scale

Development 1

Appraise 1

20+ yrs 1 - 2 yrs

Initial

Development 1

2 - 3 yrs

Note:

1 Once a well has been drilled and is of no further use, it will be abandoned. The

process includes safely sealing the well and rehabilitating the surrounding area, in

accordance with licence terms and applicable local regulations providing for

rehabilitation and industry best practice

26


RESPONSIBLE ENVIRONMENTAL MANAGEMENT.

1

LAND USE

CONCERNS

Wells occupy large surface area?

Land cannot be used for other uses?

Unsightly and disrupts wildlife habitats?

INDUSTRY FACTS

“Nuisance” / drilling period typically 98% water; < 2% “additives” (common in

household products)

Used for shale; limited use in CBM

Strictly regulated

Notes

1. Marcellus Shale – Water Treatment Options Worth Considering, www.ventureengr.com

2.. Department of Energy & Climate Change (U.K.) Report “Shale gas, NW England earthquakes and UK regulation”, 8 May 2012

27 STRICTLY PRIVATE & CONFIDENTIAL


END. THANK YOU.

AUSTRALIA / CHINA / INDIA / INDONESIA / UNITED KINGDOM / POLAND / BELGIUM / GERMANY

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