Hartshead Announces Quarterly Report For the Period Ended 31 December 2022

Source: www.gulfoilandgas.com 1/30/2023, Location: Europe

• Hartshead continued to progress the Phase I development of the Anning and Somerville gas fields with the award of Platform and Subsea Front-End Engineering Design (FEED) contracts to Petrofac.
• TelosNRG appointed to advise on the Phase I Development Field Development Plan (FDP).
• Evaluation and securing of vessels for planned seabed and environmental geophysical and geotechnical surveys conducted.
• Completion of the initial phase of a partial divestment process with interest from a number of potential industry partners, a sub-set of which entered into late-stage due diligence and negotiations.
• Applications for the UK 33rd Offshore Licensing Round commenced and progressed.
• Appointment of Steve McCraith a highly experienced Wells Manager.
• Cash and cash equivalents at the end of the quarter of A$8.9 million.

Commenting on the Quarter, CEO of Hartshead, Chris Lewis, said:
“Firstly I’d like to welcome Steve McCraith on board as Wells Manager, and with his valuable input already having a significant impact on the wells work required for our Phase 1 development, I look forward to seeing this progress under his expert management and guidance.

Progress on Phase I Field Development continues apace with ever growing momentum. Engineering studies for the selected platform and pipeline development concepts have been awarded, which, once completed, will form the technical basis for tendering for the Platform construction and Pipeline laying contracts.

The partial divestment process has achieved a significant milestone, with the initial phase complete and the process now entering into late-stage due diligence and negotiations. Discussions with potential partners continue and I look forward to providing a further update in the near future.

We continue our work with Shell with the engineering study for the offtake route ongoing as we continue to further define the various engineering aspects of the tie-in and the offshore and onshore facilities. I would like to thank Petrofac and Shell for their continued support in this work.

Finally, having the UK’s 33rd Licensing Round launched on the 7th of October with a little over three months to prepare and submit applications was an interesting start to the Quarter. Although such tight timelines and a particularly busy festive period were unexpected, as ever, the Hartshead Team put their collective shoulders to the task and we are very pleased with what has been submitted. Once again, the Team has my gratitude for all their hard work, particularly over the holiday period.

I would also like to thank shareholder for their ongoing support to date and we look forward to creating further value throughout 2023 and beyond.”

Hartshead Resources NL (ASX:HHR) (Hartshead, HHR or the Company) is pleased to provide an overview of the Company’s quarterly activities for the period ending 31 December 2022 (Quarter, Reporting Period).

The Company’s Seaward Production License P2607 covers five contiguous blocks (48/15c, 49/6c, 49/11c, 49/12d and 49/17b) located in the Southern North Sea (Figure 1) with 301.5 Bcf1 of independently audited 2P Reserves and 139 Bcf2 of 2C Contingent Resources within four existing discoveries.

Award of Platform and Subsea Engineering Design (FEED) contracts to Petrofac During the Reporting Period, Petrofac Facilities Management Limited (Petrofac) was awarded two contracts in respect of (i) the Platforms FEED contract for the Anning and Somerville unmanned minimum facilities jackets and topsides and (ii) the Subsea FEED contract for the interconnecting subsea-pipelines connecting to the Shell Exploration & Production UK Limited (Shell) Corvette export system with onward gas transport to the Leman-A complex and associated risers via the Anning platform. The award of the FEED contracts signals a significant milestone as the Phase I development progresses from Concept Select into Concept Define, prior to entering the execution phase at Final Investment Decision (FID) which is expected to occur later in 2023.

Appointment of TelosNRG Limited
TelosNRG Limited (Telos), a UK based consultancy that provide technical, QHSE and management advisory services across the energy and renewables sectors, was appointed during the Reporting Period to assist and advise Hartshead with the preparation of the Phase I Field Development Plan (FDP), which is expected to be submitted to the NSTA during Q1 2023.

Environmental Geophysical and Geotechnical Surveys
The evaluation of contracts for the Phase I development geotechnical and geophysical surveys with a view to securing vessels for deployment in 2023 was also conducted during Q4 2022. The main objectives of the surveys were to provide the Company with an interpretation of the seabed geomechanical and soil conditions at the Anning and Somerville field locations and along the pipeline route. The results of the geotechnical and geophysical surveys will form a critical component of the Environmental Statement, with an understanding of the seabed conditions at the Phase I field locations and along the pipeline route also required for completing the subsea and platform FEED design assumptions.

Investment Process for Industry Partnering
Following the appointment of LAB Energy Advisors Limited (LAB Energy), announced in June 2022, an update was provided during Q4 2022, with LAB advising the Company on industry partnering for its Phase I development via a partial divestment process.

The Company reported that it has completed the initial phase of a partial divestment process with interest from a number of potential industry partners, a sub-set of which had entered the next stage of the process involving further due diligence and negotiations. The objective of the process is to secure an industry partner and funding for the development of the Phase I Anning and Somerville gas fields.

The Company remains confident of a successful outcome to the LAB Energy farm-out/partnering process given the high level of interest shown in Hartshead’s Phase I assets, however uncertainty inevitably remains with respect to ultimately securing an industry partner, subject to continuing discussions and negotiations, which the Company hopes to successfully conclude at the end of Q1 2023.

Appointment of Highly Experienced Wells Manager
In November 2022, the Company announced the appointment of Stephen McCraith as Wells Manager within its UK Southern Gas Basin Phase I development project management team.

As a highly experienced Well Engineering and Drilling Manager with over 33 years’ UK North Sea experience, Stephen has an impressive track record of delivering major drilling programmes in the upstream oil & gas sector and brings a wealth of operating experience to Hartshead as the Company enters the Front-End Engineering Design (FEED) stage of the Phase I development of the Anning and Somerville gas fields.

The majority of Stephen’s career was spent with Shell International and Shell UK Exploration and Production in Rig Superintendent and Drilling Operations Manager roles, where he was responsible for all types drilling operations, including exploration and development drilling, infill drilling, well testing, coiled tubing operations and other well intervention services.

Stephen has also worked for several other UK North Sea Operators and service companies, including Talisman Energy, KCA Deutag Drilling and Premier Oil/Harbour Energy, in senior Well Engineering roles, where he had responsibility for delivery of their complete UK North Sea operated and nonoperated drilling programmes, including the recent Tolmount field development in the UK Southern Gas Basin. As a highly experienced oil & gas professional with in-depth knowledge of offshore drilling operations, Stephen is familiar with all aspects of HSEQ and management systems relating to well engineering activities, well integrity and assurance, which will be critical to our Phase I development well planning activities on the Anning and Somerville gas fields.

Stephen holds a BSc(Hons) degree in Exploration & Mining Geology from University College Cardiff, an MSc degree in Drilling Engineering from Robert Gordon University, Aberdeen, and is a Chartered Engineer.

Hartshead confirmed that the Company would participate in the UK 33rd Offshore Licensing Round announced by the NSTA with a closing date of 12 January 2023 for the submission of applications. The results of the licensing round and awards are expected to be announced later in 2023.

During the Quarter, Hartshead Resources NL announced that its Registered Office and Principal Place of Business have changed, with immediate effect to:
Hartshead’s closing cash and cash equivalents at the end of the Quarter were A$8.9 million.

Pursuant to Listing Rule 5.4.1, Exploration and Evaluation Expenditure during the quarter was A$970K and was comprised of field development activities; including discussions with third party infrastructure owners to identify a preferred gas transportation and processing route. Further details of the development activity during the December 2022 quarter are set out in this report.

Pursuant to Listing Rule 5.4.2 there were no substantive oil and gas production activities undertaken during the quarter.

Pursuant to Listing Rule 5.4.5, payments to related parties and their associates during the quarter as outlined in Section 6 of the accompanying Appendix 5B to this quarterly activities report were A$884K.

These payments are related to salaries, superannuation and directors’ fees paid to directors and related entities during the December 2022 quarter.

The Board of Directors of Hartshead Resources NL authorised this announcement dated 30 January 2023 to be given to ASX.

UK Southern North Sea Production Seaward License P2607 – Reserves, Contingent and Prospective Resources
Please refer to the qualified person’s statement relating to the reporting of reserves on Hartshead Resources Southern North Sea License P2607 in Hartshead’s ASX announcements dated 23 June 2022.

Please refer to the qualified person’s statement relating to the reporting of contingent and prospective resources on Hartshead Resources Southern North Sea License P2607 in Hartshead’s ASX announcements dated 6 April 2022 and 8 March 2022.

The Company is not aware of any new information or data that materially affects the information about the contingent resource or prospective resource estimates included in this announcement and all the material assumptions and technical parameters underpinning those estimates in this announcement continue to apply and have not materially changed.

Belgium >>  3/31/2023 - 2022 HIGHLIGHTS
Final dividend of USD 1.1 to be proposed to the annual shareholders meeting
Large crude tanker recovery delivers highest ...

Faroe Islands >>  3/31/2023 - P/F Atlantic Petroleum announces its Annual Results for 2022. This company announcement should be read in conjunction with Atlantic Petroleum’s Consol...

Finland >>  3/31/2023 - Gasgrid Finland’s annual report for 2022 has been published on the company’s website in Finnish and English. The annual report includes the annual rev...
Gabon >>  3/31/2023 - VAALCO Energy, Inc. reported operational and selected preliminary unaudited financial results for the fourth quarter and full year of 2022. On October...

Germany >>  3/31/2023 - Group meets revised 2022 guidance
Working capital ratio stands at minus 10.2 percent
Order book increased to EUR 9.8 billion
Guidance f...

Guinea >>  3/31/2023 - Cloudbreak Discovery Plc a leading London listed royalty company and natural resources project generator, is pleased to announce its Interim Results f...

Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.