Hartshead Resources NL (ASX:HHR) is progressing activity at Seaward Licence P2607 in the Southern Gas Basin.on the United Kingdom continental shelf.
The licence covers multiple gas fields, some of which have been only partially developed.
Geological reservoir modelling for the Anning and Somerville fields has been completed by Xodus Group.
The group calculated a total Phase 1 gas-intially-in-place (GIIP) volume of 587 Bcf – an overall increase of 18% above the precious Hartshead estimate of 496 Bcf.
Anning and Somerville fields
Anning and Somerville dynamic reservoir models have been history matched to the previous field production and pressure profiles.
These history-matched models can now be used in prediction mode to forecast gas flow rate and production from new planned wells on the fields and are being used to optimise frac design and well placement.
A number of workstreams are being progressed as part of Phase 1, including a full field health, safety and environment (HSE) study of shortlisted development options, an emissions study to generate the life of field – construction, installation, operation and decommissioning – carbon equivalent emissions for each of the greenfield facilities options and the gas offtake routes.
Hartshead is also progressing pipeline routing options and cost analysis of two potential routes.
Scope of work
The company also plans to provide a high-level summary scope of work and capex estimate for the host modifications required applicable to the six options for tie-in of single pipeline arrival to infrastructure.
These workstreams will provide final input to the report to be submitted to the Oil and Gas Authority.
Hartshead continues negotiations with owners of gas transportation and processing infrastructure local to the Phase 1 development area.
Discussions with these infrastructure owners continue with a view to the receipt of indicative commercial terms (ICTs) and kicking off engineering feasibility studies for the tie-in of Hartshead’s facilities and gas offtake in the near future.
Phase 2 Hodgkin and Lovelace fields
The Hodgkin and Lovelace fields are the target of Phase 2. They’re in the northwest part of Licence P2607 and are estimated to contain a combined 1391 Bcf of 2C contingent resources.
Phase 2 subsurface workstreams, including a new geological and geophysical database, a detailed interpretation of the new 3D seismic data and petrophysical analysis, are nearing completion.
Next steps include a gas-in-place volumetric calculation, new production forecasts for both the Hodgkin and Lovelace gas fields and revised recoverable resource estimates.
Following completion of these latter workstreams, the company hopes to make a decision to proceed with field development planning for the two fields.
Invitation to tender
Service providers have been invited to tender for:
- A Phase 1 Concept Select Peer Review to evaluate the workstreams; and
- ESG Strategy and Reporting to enable measurement and auditing of emissions.
The company is in the process of evaluating the tenders it has received to select the most suitably qualified service company for these jobs.