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Hartshead fast track critical gas

26 August 2022 13:53
ASX: HHR
Gas platform off the British coast

Hartshead Resources have partnered up with Shell to move on fast tracked development of the Anning and Somerville gas fields and completed an over-subscribed placement of $11 million for its wholly owned license in the United Kingdom’s Southern Gas Basin.

It comes as the conflict in Ukraine leads not only to soaring prices, but serves a stark reminder of a nation’s need for sovereign energy resources to keep the lights on from within their own borders.

Germany is being crippled by electricity rates almost six times as high as this time last year, while the United Kingdom has seen record highs and the nation’s capital only avoided going dark by paying a five thousand per cent premium.

Hartshead’s pact with Shell would see high-priced natural gas transported to the Bacton Gas Plant for processing — then delivery into the UK Gas National Transmission System.

The agreement will proceed with an engineering study for a tie-in option for phase I gas field development and offtake route via the petroleum giant’s North Sea infrastructure.

 

HHR License 1

Schematic of the P2607 license and assets with proposed transportation route.

 

The study, conducted by Petrofac, will provide the basis for design and cost estimates of the preferred offtake route for tie-in for Hartshead facilities and required brownfield facility modifications, with Shell providing assurance on the final study before beginning front-end engineering and design studies.

Directors of Hartshead have subscribed for $500,000 in the placement, subject to shareholder approval, in what the company says demonstrates strong support for the move.

The placement, led by CPS Capital, was completed at a price of 2.75c per share and was supported by a combination of Australian and UK institutional and family office investors.

HHR’s Australian Stock Exchange-listed share price has risen 12.12 per cent today, currently selling at 3.7c (2.56pm UTC+8 hours).

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