Global coal seam gas company Dart Energy Limited (ASX: DTE) has agreed to acquire the 90% of Composite Energy Limited that it does not already own for approximately US$46.7 million.

This transaction represents an acceleration and replacement of the previous arrangement entered into in August 2010 in which Dart had an option to inject US$5 million into Composite in January 2011 for an additional 10% of Composite, and then an option to acquire the remaining 80% of Composite prior to June 2011 for US$56 million payable in Dart shares, or cash or a mix of both.

"The move to acquire 100% of Composite is a significant milestone for Dart," said Simon Potter, Dart’s chief executive officer. "Since becoming a 10% shareholder in Composite, we have had an opportunity to undertake a detailed review of Composite's existing assets and in particular the prospects for early commercialization of the PEDL133 license in Scotland. We have also been able to work alongside Composite to help them secure two high potential new licenses in Poland and to further progress a number of other opportunities in their pipeline across continental Europe."

By moving to full ownership of Composite, Dart will be able to enter into the European CBM and shale gas industry that Composite represents by taking control of and full responsibility for Composite’s 2011 work program.

According to Potter, Dart’s immediate near-term focus will be on deploying technical expertise at PEDL133 where, over the last few months, the company has designed a pilot program. Dart expects drilling to commence in the next six months, and hopes to have PEDL133 pilot gas flowing and commercialized within a year.

In addition, Dart expects to start drilling in Poland during 2011 and to engage in a reserves recertification and upgrade exercise across the Composite portfolio.