Composite Energy Ltd

Composite Energy Ltd was a developer of coal-bed methane (CBM) or coal seam gas in the UK, and was acquired by Dart Energy in 2011.

Company profile

• Company name: Composite Energy Ltd (UK)
• Established: 2004 (as per acquisition notice)
• Legal form: Private company (not publicly quoted)
• Registered office / main address (historic): Laurel House, Laurelhill Business Park, Polmaise Road, Stirling FK7 9JQ, Scotland
• Company status: Acquired by Dart Energy Ltd (for approx. US$46.7 million) in 2011.

Nature of business

• Core business: Developer of coal-bed methane (CBM) or coal seam gas in the UK, and selected European licences.
• Geographic focus: Holdings included licence areas in Scotland (notably around the Midland Valley / Fife / Falkirk) under licence PEDL 133, plus work in Poland.
• Business drivers: Using horizontal drilling and coal seam stimulation technology to exploit unconventional gas resources (CBM) and investigate CO₂ storage in coal seams.

Key historical milestones

• In 2004 Composite Energy secured licence(s) for CBM in Scotland (e.g., PEDL 133) and began pilot field appraisal.
• In September 2010, Composite reported an investment of approx. £4.5 million to boost development.
• On 28 February 2011, Dart Energy announced that it would acquire the remaining 90% stake in Composite for around US$46.7 million.
• Following acquisition, Composite’s assets were integrated into Dart’s UK/European unconventional hydrocarbon portfolio.

Financial and structural notes

• Because Composite was privately held, full audited accounts are not widely published; however the acquisition figure gives an indication of the scale of investment (~US$46.7 m) in 2011.
• The company was active in the early/mid 2000s in CBM exploration, but the business appears to have been subsumed via the Dart acquisition rather than remaining as an independent trading entity thereafter.
• For counterparties or suppliers, this means that the original legal vehicle may no longer be active as an independent operator and obligations or contracts should be checked for transfer to the acquiring entity (Dart Energy).

Implications for business users

• If you are reviewing legacy contracts or supplier relationships with Composite Energy Ltd you should verify whether the contract was assigned to Dart Energy Ltd or another successor entity following the acquisition.
• For energy- or resource-sector stakeholders, the Composite business serves as an example of the CBM/hydrocarbon licence development approach in the UK (and its potential risks) rather than an active independent supplier of energy today.
• For due-diligence, it’s important to note that the principal business was exploration/development of unconventional gas rather than delivering energy supply or services to end-users in the conventional sense; so any obligations (capex commitments, royalty payments, licence milestones) should be assessed in the context of asset transfer rather than ongoing operations.

Summary status

Composite Energy Ltd functioned as a UK-based unconventional gas developer (coal-bed methane) with licences in Scotland and Poland, active predominantly in the 2000s up to its acquisition by Dart Energy in 2011. For business-review purposes today, the key takeaway is that the entity’s operations were integrated into its acquirer, so the original legal entity is unlikely to be operating independently. Any existing relationships or liabilities tied to the company should be evaluated in that light.