• Corporate Finance Energy sector specialist, Carlingford, appointed by Hartshead to assist the Company in finalising third party financing for the Phase 1 gas fields development.
• Geotechnical Survey completed across the Anning and Somerville fields platform and pipeline locations using Geoquip Marine Operations.
• A contract for a Geophysical Survey of pipeline routes, covering the Anning and Somerville field developments awarded to Gardline Limited following a competitive tender and evaluation process.
• After the Reporting Period, Gardline Vessel “Ocean Observer” was mobilised to the Anning and Somerville field locations to commence a survey of the pipeline routing for the gas offtake from the fields
• Strong net cash position of over $30 million

Commenting on the Quarter, CEO of Hartshead, Chris Lewis, said: 
“The Hartshead and RockRose Energy team integration has been very successful and the teams are focussed on progressing to Final Investment Decision (FID), upon receiving no further technical questions from the North Sea Transition Authority. We have seen the UK gas price surge to over £1.50 per therm in the last few weeks and the forward curve for UK gas remains very strong for the many years ahead. Our Phase 1 gas project will move into the development phase post taking FID later this year and we are uniquely positioned to help provide new gas supply to the UK. This all bodes very well for our shareholders as we progress to development of Licence P2607”.

Platform Seabed Geotechnical Survey Completion 

In the Reporting Period, Hartshead announced that the Company, in conjunction with joint venture partner RockRose Energy (RockRose), completed the Geotechnical Survey across the Anning and Somerville fields platform and pipeline locations using Geoquip Marine Operations (Geoquip Marine).

All the objectives of the survey were met with a total of four rock cores recovered, one 30 metre core and one 50 metre core from each location. The cores will provide essential soils information to enable the engineering design of the platform anchor points and also confirm the requirements to locate the jack-up drilling rig over the platforms for the well operations.

The material recovered from the survey will undergo laboratory analysis in accordance with international standards and procedures, with the results expected to be reported within the current quarter. An initial review of the data indicates that both locations are suitable for platform and drilling rig operations.

Despite unseasonably poor sea conditions, the Geoquip Seehorn, an 83 metre Class 2 Dynamic Positioning (DP2) Multi-Disciplined Offshore Survey Vessel performed the operations without any problems or incidents, with the entire survey process completed in under 12 days.

Pipeline Seabed Geotechnical Survey Contract Award Commencement of Pipeline Route Survey

In August 2023, Hartshead announced that the Company has awarded a contract for a Geophysical Pipeline Survey for the Anning and Somerville fields to Gardline Limited (Gardline), following a competitive tender and subsequent technical and commercial bid evaluation. 

In September 2023 the Gardline Vessel “Ocean Observer” was mobilised to the Anning and Somerville field locations to commence a survey of the pipeline routing for the gas offtake from the fields. The survey is expected to be completed in early October, subject to any weather downtime.

The MV Ocean Observer, an 80.4 metre Multi Role Survey Vessel, will conduct a work programme that will provide the Company with confirmation of the seabed and sub seabed soil conditions, help finalise the pipeline design and facilitate efficient pipeline installation from the Anning and Somerville locations.

In addition to commencement of the pipeline survey, as per the development contracting plan, the Company has received bids for the EPIC contract for the Anning and Somerville Platforms. The Company will now review the technical and commercial elements of each bid prior to providing a recommendation to the JV Operating Committee as to which company to award the contract to.

CORPORATE & FINANCIAL 

In July 2023, Hartshead announced the appointment of Carlingford-GFI (Carlingford), and the extension of the of LAB Energy Advisors Limited (LAB Energy) mandate. Both parties are now working to support Hartshead in finalising third party finance for the Phase I gas fields development.

The Company is exploring multiple parallel options to secure project finance, including a conventional debt facility, pre-payment on future production streams, publicly listed and private bonds and possible additional divestment of equity in the Phase 1 development project. Consideration of additional equity divestment follows the recent highly successful farmout to RockRose Energy and will be considered alongside the various debt options with a view to maximising long term value to shareholders. Discussions are already advanced on all of these fronts, and the advisory team is now in place to deliver the optimum funding solution.

Carlingford are a UK based leading independent corporate finance boutique, focused on raising finance and advising on transactions in upstream, energy transition, renewables and natural resources. The Carlingford team have a strong track record in securing structured project finance for oil and gas developments globally and bring a wealth of successful transaction experience with clients ranging from the oil & gas majors to independent energy players.

LAB Energy recently supported Hartshead in the successful farmout of 60% of license P2607 for a total aggregate value of A$205.3 million and are a UK based specialist energy sector advisory company with extensive upstream corporate M&A and asset A&D experience.

Following the appointment of the advisory team, Carlingford and LAB Energy will support the company, in order to secure the balance of Hartshead’s share of required project finance for the Phase I Anning and Somerville gas fields development following Final Investment Decision (FID).

Project development activities continue to progress as planned, with recent activity including commencement of the platform seabed geothechnical surveys. The main objectives of the geotechnical survey are to provide the Company with confirmation of the seabed and sub seabed soil conditions to finalize the design and the efficient installation of the offshore facilities and to ensure the safe location of the jack-up drilling rig at the Anning and Somerville locations.

KeyFacts Energy: Hartshead UK country profile