Hartshead is progressing the potential farm-out of its Anning and Somerville gas fields with the process now in the next stage involving further due diligence and negotiations.

The company noted that the initial phase of the partial divestment process had already resulted in interest from several potential industry partners, some of which have entered into the current stage.

This process is aimed at securing an industry partner and funding for Hartshead Resources (ASX:HHR) development of Anning and Somerville, which make up the first phase of its UK Southern Gas Basin development.

It warned that while the likelihood of securing a partner during the first quarter of 2023 was high given the level of interest shown, the ability to reach an attractive deal remained subject to continuing discussions and negotiations.

Phase 1 development

The Phase 1 development seeks to bring the Proved and Probable (2P) reserves of 301.5 billion cubic feet of gas contained within the two fields into production.

Production will be carried out 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.

 

 

This article was developed in collaboration with Hartshead Resources (ASX:HHR), 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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