Overview

Hartshead is 100% owner and operator of License P2607 which is comprised of five blocks in Quads 48 and 49 on the United Kingdom Continental Shelf, in the Southern Gas Basin. The License contains multiple gas fields, some of which have been only partially developed and multiple exploration prospects with a combined resource base of circa 0.8 Tcf of gas.

Operations

The gas fields and prospects are divided into three phases for workstreams and operations:

PHASE I

Comprises the Somerville and Anning Gas Fields. Both fields have historic production, multiple well penetrations, 3D seismic coverage and combined independently audited 2P reserves of 301.5 Bcf of gas.

Hartshead has commenced field development planning work on these two fields with submission of the Phase I development Concept Select Report (CSR) to the North Sea Transition Authority (NSTA) in May 2022. Hartshead intends to complete the Front-End Engineering & Design (FEED) stage and define the gas export route during 2022/2023 with a view to taking a Final Investment Decision (FID) on the development in 2023 and achieve first gas in late 2024.

ERCE have reviewed and evaluated the selected development concept which consists of six production wells from two wireline capable Normally Unmanned Installation (NUI) platforms at Anning and Somerville. These platforms will then connect via a subsea pipeline to third party infrastructure for onward transportation and processing to entry into the UK gas network and provide the basis for determining the economic sales gas volumes or reserves assigned to the Anning and Somerville gas fields. Raw gas production forecasts have been adjusted for backout of third party gas volumes, shrinkage, fuel and flare and an Economic Limit Test (ELT) to yield a sales gas volume on which to base the Reserves with any associated liquids production being summarised as condensate reserves.

PHASE II 
Comprises the Hodgkin and Lovelace Gas Fields.  Similarly, these field have production, well penetrations and 3D seismic coverage.  Seismic imaging requires improvement by reprocessing of the data in order to move these fields into development planning.  Hartshead aims to complete further geological and geophysical work during 2022, prior to having the contingent resources in Phase II audited and moving these fields forward for development.

PHASE III 
Hartshead’s exploration portfolio has undergone a study by Xodus Group which has generated a new prospect inventory totalling 14 prospects and leads with unrisked 2U Prospective Resources of 344 Bcf. Additional work is planned to de-risk the prospects further, economically evaluate and rank the prospects prior to the short-listing of a preferred prospect for initial well planning and drilling.

P2607 Production and Development Area

The multi-phased development of Hartshead’s Seaward Production License P2607 has the potential to serve the UK Government’s Bacton Energy Hub initiative and potentially provide material volumes of natural gas feedstock for blue hydrogen generation as well as providing future offshore infrastructure potentially for use in Carbon Capture & Storage and electrification projects.