Hartshead’s plan to fast-track development of its Anning and Somerville gas fields has received a strong show of confidence with investors oversubscribing for a $11m placement.

The placement of 400 million new shares priced at $0.0275 was supported by a combination of Australian and UK institutional and family office investors with company directors proving that they have skin in the game by subscribing for $500,000 worth of shares.

Hartshead Resources (ASX:HHR) intends to use the proceeds to fund the Shell engineering study, geotechnical survey and fast-track the Front-End Engineering & Design (FEED) stage of the Phase 1 field development in the UK Southern Gas Basin.

“We are very pleased to have received firm commitments to raise $11 million before costs through an oversubscribed placement,” chief executive officer Chris Lewis said.

“Importantly, these funds will be used to further advance the Phase I field development of the Anning and Somerville gas fields, including the recently announced Shell Gas offtake route engineering study, which represents a significant milestone in the advancement of the project.”

The company adds that it now intends to explore the merits of a dual listing on the AIM market of the London Stock Exchange given the strong interest shown by UK investors and funds.

Gas field development

Phase 1 development of Hartshead’s UK Southern Gas Basin project involves bringing the Anning and Somerville fields, which have combined Proved and Probable reserves of 301.5 billion cubic feet of gas into production.

These fields will be brought into production through six wells connected to two wireline-capable Normally Unmanned Installation (NUI) platforms.

These platforms will in turn transport the extracted gas via a subsea pipeline to third-party infrastructure – likely Shell’s Southern North Sea infrastructure – for onward transportation and processing into the UK’s gas transmission network.

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

Hartshead is working with Shell on an engineering study, which will be carried out by Petrofac, into the preferred offtake route and agreed tie-in option for the two fields

 

 

 

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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