Dart Energy has given up its dream to become a global player in non-conventional gas, agreeing to a merger with a UK operator that will see it dump assets.

Dart has agreed to merge with IGas Energy, which is listed on London's secondary AIM market, selling all of its non-UK assets in a scheme of arrangement.

Dart shareholders will receive 0.08117 IGas shares for each Dart share, valuing the company at $211.5 million.

Dart shares will be bought at just 18.98¢ each, a far cry from their levels above $1 three years ago.

The group has floundered since being spun off from parent company Arrow Energy, and will now change its strategy for the future.

Dart had sought to get it operations on a viable footing in recent years, taking measures such as listing offshore assets in Singapore and, when that failed, seeking the now-abandoned listing in London.

Dart took the offshore assets of parent company Arrow when the latter was bought by Shell. Dart tried to embed itself in the domestic market with the purchase of Apollo Gas, but the company has struggled to develop its extensive asset portfolio despite high gas prices.
The firm recently posted $43.5 million in impairment charges, related to the reduced value of assets in NSW and the UK.

Soul Pattinson's New Hope Corp has backed the merger proposal, and holds a 16.3 per cent stake in Dart. Other shareholders totalling 14 per cent of Dart's capital have backed the move too.