Hartshead completes key survey for UK offshore gas development

Hartshead’s ongoing development of its UK Southern Gas Basin project has taken another key step with the completion of the geophysical survey over the Anning and Somerville fields.

The survey, which was completed within budget and without incident, will form a critical component of the Environmental Statement and understanding of the seabed and pipeline route conditions at the two fields that are required for the platform front-end engineering and design (FEED) jacket design verification.

It consisted of a detailed analogue and 2D high resolution survey over a 1,000m by 1,000m area centred on the Anning and Somerville jacket locations and a more detailed 400m by 400m analogue survey to inform the exact emplacement of the Anning and Somerville jackets.

Hartshead Resources (ASX:HHR) is also progressing other key workstreams dedicated towards bringing Anning and Somerville into production.

This includes completing the FEED and submitting the Field Development Plan (FDP).

“We are proud to have safely conducted our first offshore operations and surveying the location where the Anning and Somerville gas production platforms will be installed in the near future,” chief executive officer Chris Lewis said.

“This was a successful campaign and I would like to extend my gratitude to the entire operations team including the offshore and onshore staff of GEOxyz.

“We now have a very busy period ahead as we deliver key milestones on the road to taking FID on Phase 1 later this year.”

The company recently raised $20m to fund the key progress works and reached a farm-out deal with UK North Sea independent RockRose Energy, which will take up a 60% equity interest by reimbursing past costs, partially carry the company’s share of development costs, bonus milestones and $48.4m of UK Government Investment & Capital Allowance.

Gas development

Development of Anning and Somerville, which have Proved and Probable (2P) reserves of 301.5 billion cubic feet of gas, is the first step of the company’s Southern Gas Basin development.

Production will be carried out through six wells connected to two wireline-capable Normally Unmanned Installation (NUI) platforms, which will transport the gas to Shell’s infrastructure through its own subsea pipeline.

Peak production is estimated to be about 140 million standard cubic feet per day with first production expected in late 2024.

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.