United Kingdom

Southern North Sea
Blocks 48/15c, 49/11c, 49/12d, 49/17b, 49/6c
License Area 729.5 km2

Overview

Hartshead has recently completed a Farm-out of 60%of License P2607 to Rockrose Energy and retains 40% ownership 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 across Phase I, II and III of the field development programme.

Figure 1. Reserves, Contingent and Prospective Resources across all three development phases of License P2607 60% owned by Rockrose and 40% Hartshead.

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’s field development planning work is underway on these two fields and following the submission of the Phase I development Concept Select Report (CSR) to the North Sea Transition Authority (NSTA) in May 2022 the company has received a “Letter of No Objection”, which finalises the “Assessment Phase” of the field development and allows entry into the “Authorisation Phase”. Hartshead is completing the Front-End Engineering & Design (FEED) stage and define the gas export route during 2023 with a view to taking a Final Investment Decision (FID) on the development in 2023 and achieve first gas in 2025.

ERC Equipoise 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.

Figure 2. Seaward License P2607 holds multiple gas fields and prospects. 60% owned by Rockrose and 40% Hartshead.

RESERVES1   1P 2P 3P
PHASE I

 
49/17b

ANNING
Sales Gas (Bcf) 73 145 245
Condensate (MMbbl) 0.081 0.192 0.375
49/17b

SOMMERVILLE
Sales Gas (Bcf) 107 156.5 213
Condensate (MMbbl) 0.119 0.208  213
    Total (MMboe) 31.2 52.4 79.7 

1Hartshead Reserves estimates are from ERC Equipoise Limited, Independent Competent Persons Report (CPR) entitled “Hartshead Resources NL Somerville and Anning Competent Persons Report” dated June 2022. See Qualified Persons Statement for reserves reporting notes. 60% owned by Rockrose and 40% Hartshead.

Hartshead has entered into an agreement with Shell, to undertake an Engineering Study for tie-in of Hartshead’s Phase I gas field development to Shell’s infrastructure, which will provide a basis of design and cost estimate for the tie-in of facilities through Shell’s infrastructure, detailing the required brownfield modifications as part of the gas offtake route for the Anning and Somerville gas fields. The study work will be undertaken by Petrofac and managed by Hartshead, with Shell to provide project assurance, prior to entering the next phase of engineering work, which is the Front-end Engineering and Design (FEED), prior to final Field Development Plan (FDP) submission to the UK government. The Engineering Study with Shell will define Hartshead’s route to transport its natural gas and condensate to the prospective points of sale, therefore representing a critical component of the future FEED and FDP workstreams.

Figure 3. Hartshead multi-phased development with proposed gas transportation via Shell’s infrastructure into the Bacton gas terminal.

Figure 4. Preferred tie-in point of Anning and Somerville fields to Shell’s infrastructure (Corvette and Leman-A platforms)

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 2023, prior to having the contingent resources in Phase II audited and moving these fields forward for development.

 

Figure 5. Location of the Phase II development Hodgkin and Lovelace fields within the License P2607 area.

CONTINGENT RESOURCES2 (Bcf) 1C 2C 3C
PHASE II 49/6c, 49/11c LOVELACE 14 39 79
48/15c HODGKIN 35 100 387

2Hartshead Resources management estimates. 60% owned by Rockrose and 40% Hartshead.

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.

Figure 6. Phase III prospect map with unrisked 2U prospective resources (Bcf).

PROSPECTIVE RESOURCES (Bcf)2 Recoverable Volume (Bcf) GCoS
1U 2U 3U P50
Mclaren 18 27 39 0.54
Stephenson 36 47 60 0.43
Widdowson East 6 29 79 0.32
Widdowson Central 11 21 40 0.50
Lonsdale 5 16 31 0.50
Anderson 5 12 29 0.45
Garrod 16 52 125 0.50
Ayrton 25 74 146 0.41
Wenlock Prospect 1 4 19 55 0.36
Wenlock Prospect 2 1 5 19 0.36
Wenlock Prospect 3 1 5 17 0.36
FFs Prospect 1 3 11 26 0.41
FFs Prospect 2 8 19 37 0.35
FFs Prospect 3 4 9 17 0.34
Arithmetic Total 143 344 719

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.

Figure 7. Bacton Catchment Area: Energy Hub integration with various offshore installations illustrating their potential role in future hydrogen generation.

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