Hartshead is following up on the recent submission of the field development plan for Phase 1 of its UK Southern Gas Basin assets with the appointment of Carlingford to finalise third party financing.

It also follows on the successful farmout of 60% of the project to North Sea oil and gas producer RockRose Energy for a gross consideration of $205.3m.

Carlingford is a UK-based independent corporate finance boutique with a strong track record in securing structured project finance for oil and gas developments globally.

As part of exploration of multiple parallel options to secure project finance, Hartshead Resources (ASX:HHR) has also extended the mandate of LAB Energy Advisors, who assisted the company with the successful farm-out of 60% of licence P2607 for $205.3m.

Both Carlingford and LAB Energy will support the company’s efforts to finalise third party financing for the development of the Anning and Somerville gas fields.

This could include a conventional debt facility, pre-payment on future production streams, publicly listed and private bonds and possible additional divestment of equity in the Phase 1 development project.

“I am confident that the appointment of both Carlingford and LAB Energy will ensure the company achieves the best outcome for shareholders as we move toward putting all of our required development funding in place, prior to taking FID later this year,” chief executive officer Chris Lewis said.

“We are rapidly progressing our Phase I development alongside our JV partner RockRose, with work across platforms, pipelines, wells and offtake advancing well.

“With the recent submission of the Field Development Plan we will now move to progress our Environmental Statement later this year.”

UK Southern Gas Basin development

Development of the company’s UK Southern Gas Basin project will be carried out in three phases with the first involving the development of the Anning and Somerville gas fields through the use of six production wells that will be connected to two wireline capable Normally Unmanned Installation (NUI) platforms.

These platforms will in turn connect subsea to infrastructure for onward transportation and processing for entry into the gas network.

Anning and Somerville have combined Proved and Probable (2P) Reserves of 301.5 billion cubic feet of gas, which the company is likely to have little difficulty spruiking to gas hungry customers in the UK.

Phase 2 of the UK Southern Gas Basin project will involve the development of the Hodgkin and Lovelace fields, which host further 2C Contingent Resources totalling 139Bcf, while the third phase contains new exploration prospects in its inventory that currently hosts Prospective Resources of 344Bcf.

 

 

 

This article was developed in collaboration with Hartshead Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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