North Sea operator Hartshead Resources (ASX:HHR) is progressing the first phase of its Anning and Somerville after receiving “clarity” from the UK budget.
The Australian firm previously said it was “days away” from issuing contracts for the flagship project when Labour pledged to introduce a “proper windfall tax” in February.
The resulting uncertainty led to job cuts as the company grappled with financing challenges for Anning and Somerville, located in the Southern North Sea (SNS).
Now Hartshead says the recent October budget has “provided the necessary information” for the evaluation of the project under the revised fiscal regime.
Hartshead chief executive Chris Lews said the budget had “provided the clarity that our industry has needed and been calling for since February this year”.
“We are now in a position to advance the Anning and Somerville gas fields development, which remains a robust and high value project under these new fiscal terms,” he said.
Hartshead said it will meet with the North Sea Transition Authority (NSTA) regulator this week ahead of submitting a field development plan.
The firm will also meet with its joint venture partner Viaro Energy later in December.
Viaro recently took ownership of Shell and ExxonMobil assets in the SNS, allowing for a reassessment of the gas export route for Anning and Somerville, Hartshead said.
According to the NSTA Pathfinder database, Hartshead is targeting first production from Anning and Somerville in 2026.
The development of the fields, located in the SNS License P2607, will be via two unmanned wellhead platforms and pipelines and a likely tieback via the Corvette and Leman A platforms.
The licence, which also covers the Hodgkin and Lovelace plays, holds an estimated total 2P reserves of 301.5 billion cubic feet of gas, equivalent to around 52 million barrels of oil.
33rd Licensing Round
Elsewhere, Hartshead estimates it now holds more than a trillion cubic feet of gas reserves following the 33rd Licensing Round.
The Australian firm secured 10 blocks across six licences in the latest North Sea licensing round to add to its existing P2607 Licence.
With the additional blocks, Hartshead said it now holds a net interest of 1.5 trillion cubic feet (Tcf) of reserves and contingent and prospective resources.
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