Hartshead Resources NL (ASX:HHR) has appointed ERC Equipoise Ltd (ERCE) to provide an independent technical and commercial audit of the reserves and resources associated with the Phase I, II and III developments on its Seaward Licence P2607 in the UK Southern Gas Basin.
ERC Equipoise will also conduct a peer review of Phase I, II and III technical and commercial workstreams.
This independent audit will be used to compile an ASX-compliant competent persons report (CPR) across the licence.
The peer-review will provide expert feedback of completed workstreams and augment the Phase I Concept Select Report (CSR), which is nearing submission.
Strong history
Hartshead CEO Chris Lewis said: “We are pleased to be working with ERCE, who have a strong history of involvement with gas development projects in the Southern Gas Basin.
“I look forward to being able to provide an update on the company’s resource base once the CPR has been concluded.”
Peer review
The peer review of the Phases I, II and III cover the workstream below and each technical discipline will be reviewed by an ERC Equipoise expert, who will provide feedback and highlight any opinion differences between the review team and Hartshead.
Phase I Development – Anning and Somerville
- Geology & Geophysics and Gas-Initially-In-Place (GIIP) volumetrics
- Reservoir Engineering, simulation, and production forecasts
- Well design and costs
- Greenfield facilities concept screening, selection & costs
- Export route screening, selection & costs
Phase II Development – Hodgkin and Lovelace
- Geology & Geophysics and GIIP volumetrics
- Reservoir Engineering and production forecasts
- Conceptual development and costs
Phase III Development – Exploration Portfolio
- Geology & Geophysics, GIIP volumetrics, resources and risking
The ERCE review team will provide any suggestions for any areas of improvement
Audit
The reserves and resources reported in the CPR will be audited to the June 2018 SPE/WPC/AAPG/SPEE/SEG/SPWLA/EAGE petroleum resources management system (PRMS) standard.
An economic evaluation will include the net present value (NPV) based on discounted cash flows (DCF) and economic cut-off of the project.
The audit of the Phase III exploration portfolio will be limited to selected short-listed prospects out of the total portfolio of 14 prospects.
For each prospect, a review of the subsurface data used to probabilistically assess the GIIP and resources will be carried out and independent estimates of prospective resources and geological chance of success (GCoS) will be made.