Hartshead Resources (ASX:HHR) Gives Operational Update on UK Southern Gas Basin Project

Jane Morgan Management

Perth, Australia – 3 September 2024 | Hartshead Resources NL (ASX: HHR) ("Hartshead" or the "Company") is pleased to provide an operational update on its UK Southern Gas Basin Project, where significant progress has been made in the final quarters of FY23 with the reprocessing and interpretation of seismic data over the P2607 licence area (including the Anning and Somerville fields). The results underscore the significant potential for enhanced gas recovery and the strategic advancement of Hartshead’s project.

Highlights:

• Subsurface Imaging: The reprocessed seismic data over the P2607 licence has resulted in significantly improved imaging of the subsurface, including the Anning and Somerville fields, as well as other fields within the area. This provides greater confidence in the geological structures and the volumes of Gas Initially In Place (GIIP).

• Positive Revision of GIIP: The revised interpretation of the Anning and Somerville fields in the area confirms previous work done to date, and indicates a small increase in the estimated GIIP, enhancing the project’s potential. 

• Subsurface Modelling: A new subsurface model is currently being developed, integrating the updated seismic data and reservoir properties. This model may better guide the detailed planning of well locations, optimising potential gas recovery from each well while minimising risks from drilling. This work is critical as Hartshead moves to finalise the Field Development Plan (FDP) for regulatory approval.

• Favourable Gas Market Conditions: Despite European gas storage levels reaching 90% capacity, UK NBP gas prices have remained strong at ~93p/therm, with winter futures trading above £1/therm. 

• Infrastructure Acquisition: Viaro Energy has reached an agreement with ExxonMobil and Shell to acquire a 100% working interest in associated gas infrastructure, which is identified as a potential offtake route for Hartshead’s initial phase of development. This acquisition enhances the viability of the project both logistically and commercially.

• UK Government Energy Profits Levy Update: Hartshead is awaiting further clarity on changes to the UK Government’s Energy Profits Levy, which includes a potential increase in the levy rate, as well as adjustments to capital allowances.

Chris Lewis, CEO of Hartshead Resources, commented: “The recent sub-surface work undertaken by the team serves to increase our confidence in the volumes of gas remaining to be recovered at Anning and Somerville, as well as assisting with future detailed well planning to maximise recovery and minimise risk. All of this work ensures that the field development execution will be successful in delivering gas to the UK grid.”

“We see strong gas prices in Europe leading out of summer, demonstrating the continued robustness of the European gas market which unpins future gas prices in the UK.”

Christopher Lewis
Chief Executive Officer
+61 8 9226 2011
info@hartshead-resources.com

Jane Morgan
Investor and Media Relations
+61 405 555 618
jm@janemorganmanagement.com.au

About Hartshead Resources NL:

ASX-listed Hartshead Resources NL is focussed on building a financially, technically and environmentally responsible European Energy business. 

Hartshead’s goal is to secure and invest in projects where resources can be extracted and delivered to meet Europe’s growing energy demand while supporting the transition to a low carbon future. 

In progressing this strategy Hartshead is focused on the development of Production Seaward License P2607 (60% owned RockRose Energy/40% Hartshead), comprising of five blocks which contains four existing gas fields in the UK Southern Gas Basin. 

Hartshead brings together a highly experienced oil and gas team with specialised knowledge covering subsurface, engineering, commercial, QHSE and capital markets with the required skillsets needed to deliver oil and gas upstream projects successfully and safely.

Jane Morgan
Jane Morgan Management
Investor & Media Relations
jm@janemorganmanagement.com.au