A new phase of project work – focussed on first production – has got underway at a Southern North Sea gas project.
Hartshead Resources (ASX: HHR) is kicking off geophysical surveys across its Anning and Somerville fields and inter-field pipeline locations, using GEOxyz’s Geo Ocean III vessel.
It follows the completion of farm-out process for the project, with Viaro Energy snapping up a majority stake for £105 million.
Mobilisation of the Geo Ocean III vessel is scheduled for the coming days, with the results of the survey being used to inform the environmental statement and understanding of the seabed.
They will also go some way to towards the submission of a field development plan (FDP, as well as platform front-end engineering design (FEED) jacket design verification.
Last week, Hartshead announced the milestone farm-out of License P2607 to RockRose Energy, a subsidiary of Viaro, as well as the completion of a £10.8m placement.
Both moves materially de-risked the company’s path to final investment decision (FID), for Phase 1 of the Anning and Somerville project.
Hartshead is now embarking on a “very active period”, as it completes the outstanding work streams aimed at bringing the project to FID, targeted for Q3 2023.
The phase 1 development continues to present a “highly unique and compelling development opportunity” for the Australian company, with the production of material gas volumes into highly supportive UK gas prices, with first cash flows slated for 2025.
Key milestones for the project include: completion of FEED Q2 2023, submission of the FDP Q2 2023, execution of debt financing Q3 2023, target FID Q3 2023.
Chris Lewis, Hartshead chief executive, commented: “We are proud to be conducting our first offshore operations and surveying the location where the Anning and Somerville gas production platforms will be installed in the near future. We now have a very busy period ahead as we deliver key milestones on the road to taking FID on Phase 1 later this year.”
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