Highlights:

• Completion of an over-subscribed Placement to raise A$11 million (before costs) at a Placement price of A$0.0275 per share supported by a combination of Australian and UK institutional and family office investors.
• Placement proceeds will be applied to the Shell Engineering Study, Geotechnical Survey and to fast track the Front-End Engineering & Design (FEED) stage of the Phase I field development of the Anning and Somerville gas fields.
• Agreement has been reached with Shell to conduct an Engineering Study for the preferred offtake route and agreed tie-in option for the Phase I field development.
• The offtake route is via a tie-in to Shell’s Southern North Sea infrastructure for transportation to Bacton for onshore processing and delivery to the UK Gas National Transmission System.
• The Engineering Study will be conducted by Petrofac and will provide a basis for design and cost estimate for the preferred gas offtake route for the tie-in of Hartshead facilities and the required brownfield facility modifications.
• Shell will provide assurance on the final study prior to commencing Front-End Engineering and Design studies
• Hartshead Directors have subscribed for A$500,000 in the placement subject to shareholder approval, demonstrating their strong support for the Company.

Hartshead Resources has received firm commitments to raise A$11 million (before costs) to fast track the Phase I field developmment of the Anning & Somerville gas fields, including the recently announced Shell Gas Offtake route Engineering Study, geotechnical site survey, commencement of Front-End Engineering & Design (FEED) and other working capital requirements. 

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. 

The Company intends to fund the below scope of works, estimated to cost approximately £505,000, from existing cash reserves.

The scope of works with Shell encompasses:

• Provide guidance in relation to the deliverables.
• Ensure output and results of Petrofac Scope of Work fully complies with the Shell select phase for the feasibility study.

The scope of works with Petrofac encompasses:

• Offshore construction support for the subsea pipeline(s) tie-in activities on the Corvette to Leman Alpha export pipeline.
• Installation of line-of-sight communication dishes and interface connection.
• Pipework for successive stage-wise production flow routing, system control and integration production route export options across the asset.
• Control room integration of communications and all reporting systems with the new platforms.

The study is expected to take a total of 3 months. Upon completion the agreement will end.

Hartshead CEO, Chris Lewis, commented: 
“We are very pleased to have received firm commitments to raise $11 million before costs through an oversubscribed Placement. Importantly, these funds will be used to further advance the Phase I field development of the Anning and Somerville gas fields, including the recently announced Shell Gas Offtake route Engineering Study, which represents a significant milestone in the advancement of the Project.

I would like to thank both existing and new shareholders for their support”.

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