South Sumatra is close to Indonesia's most populated island, Java, which is energy and gas deficient. Pipeline infrastucture already exists to transport gas from South Sumatra to this market.

Eastern Kalimanatan is also short of gas. In particular, the Bontang LNG plant is operating at well below capacity as production from nearby conventional fields declines.

Dart Energy's strategic themes for Indonesia:

• Focus on two specific regions of Indonesia with attractive technical and business characteristics for CBM (South Sumatra and eastern Kalimantan).
• Pursue an LNG-focused strategy in eastern Kalimantan given the likely buyer of gas in that region will be the Bontang LNG Plant.
• Establish and maintain partnerships with major oil, gas and coal companies which can deliver in-country expertise and assist with access to tenements.
• Pursue a long-term strategy to be an industry consolidator given the relatively high number of smaller CBM blocks awarded and the widely dispersed current ownership of those blocks.

Indonesian business development activity:

• Dart is pursuing a number of business development opportunities in Indonesia that include applications for new PSCs and farm-in agreements.
• In South Kalimantan, Dart Energy concluded a joint evaluation study with PT Adaro covering 3,000 km² that overlaps the Adaro coal mining areas.  An application for two PSCs covering portions of the joint study area has been submitted and is pending approval from the Indonesian Government.  Dart is targeting the award of either one or both these PSCs in 2011.

Dart's Indonesian asset portfolio

·