Dart Energy, an Australian company focused on the development of coal bed methane in eastern Australia and Asia, has invested AUD 7 million in exchange for a 10% stake in Composite Energy, a Scottish company engaged in the extraction of natural gas from coal seams. The investment in Composite provides Dart with exposure to opportunities in the coal bed methane (CBM) and shale gas sectors across the UK and Europe and is part of its wider strategy to create a global CBM company.

Dart has also been granted two options; one, to make a further investment in the company; and two, to make an offer to acquire the company at an agreed price. These options expire in January 2011 and June 2011 respectively.

Mr Keith Lough CEO of Composite Energy said that "We are delighted to welcome Dart not only as an investor in Composite but as we continue to build our CBM and shale gas extraction business in the UK and Europe we also expect to benefit from the technical experience of the Dart team. "The funds received from Dart will be utilized in drilling CBM and shale gas wells in PEDL133 in Scotland, securing further licenses and supporting drilling activities in a number of European countries." Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon.

(Sourced from TMCnet.com)