Hartshead Resources NL (ASX:HHR) has secured the funding to advance an engineering study and a geotechnical survey as part of an agreement with Shell, while also fast tracking the front-end engineering and design (FEED) stage of phase 1 field development at the Anning and Somerville gas fields.
The over-subscribed placement raised $11 million at a price of $0.0275 per share, supported by a combination of Australian and UK institutional and family office investors.
The engineering study and geotechnical survey will support an offtake agreement Hartshead has signed with Shell PLC (LSE:SHEL, NYSE:SHEL) and a tie-in option with Shell’s Southern North Sea infrastructure for transportation to the UK for onshore processing and delivery to the UK Gas National Transmission System.
Read: Hartshead Resources shakes hands with Shell on gas offtake study
“Significant milestone” for project
“We are very pleased to have received firm commitments to raise $11 million before costs through an oversubscribed placement,” Hartshead Resources CEO Chris Lewis said.
“Importantly, these funds will be used to further advance the phase one 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.”
The engineering study will be conducted by Petrofac, intended to provide a basis for cost estimates for the preferred gas offtake route involved in the Hartshead tie-in with Shell and the required brownfield facility modifications.
Under the agreement between the two companies, Shell will provide assurance on the final study before FEED studies begin.
As a show of support for the company, Hartshead directors subscribed for $500,000 in the placement – subject to shareholder approval.