Hartshead Resources NL (ASX:HHR) has upgraded the gas resources of its Anning and Somerville fields to the reserve category following an independent technical and commercial audit conducted by ERC Equipoise (ERCE) on phase one development resources.
From this audit, Hartshead has produced a new competent persons report (CPR) with phase one field development 2P (proved plus probable) gas reserves of 301.5 billion cubic feet (52 million barrels of oil equivalent).
Subsequently, Hartshead has classified the Anning and Somerville fields in the UK Southern Gas Basin as ‘justified for development’ and has assigned sales gas volume estimates based on proved (1P), probable (2P) and unproven (3P) reserves.
“Tremendous news”
“Delivering reserves in licence P2607 affirms Hartshead’s core strategy that aggregating high quality, discovered gas volumes, close to infrastructure and delivered to a very strong gas market, demonstrates commercial value and justifies the development of these fields,” Hartshead Resources CEO Chris Lewis said.
“Having this confirmed by ERCE adds significant value to Hartshead's Southern Gas Basin portfolio.
"After 16 months’ work by the Hartshead team in refining and identifying the best development concept, the confirmation that the project has this certainty of being developed is tremendous news.”
Hartshead expects these development reserves to increase the project’s value and support partnering and project financing – recent transactions in the area have exceeded A$11.57 (US$8) per barrel of oil equivalent with combined 2P and 2C contingent resources.
The company intends to conduct a technical and commercial audit of its phase two and phase three developments in the coming months with the aim of establishing an audited resource of up to 800,000 billion cubic feet of high-quality gas.