Substantial Uplift in Project Value Following Independent Technical and Commercial Audit of Anning and Somerville Gas Fields

Hartshead Resources NL (ASX:HHR)

Highlights:

  • Anning and Somerville gas field development classified as Reserves following an independent Technical and Commercial Audit conducted by ERC Equipoise of Hartshead’s Phase I Development Resources.
  • Competent Persons Report (CPR) published with Phase I Field Development 2P Gas Reserves of 301.5 Bcf (52 MMboe).
  • Anning and Somerville fields classified as Justified for Development and accordingly assigned sales gas volumes based on 1P, 2P and 3P Reserves.
  • Upgrade of Anning and Somerville fields to certified Reserves adds value as the company progresses potential industry partnering and project financing.
  • Development reserves expected to substantially increase project value with recent UK North Sea transaction multiples exceeding US$8 per boe of combined 2P reserves and 2C contingent resources.
  • The technical and commercial audit of the Phase II and Phase III developments will follow in the coming months as we aim to establish audited resources of up to 0.8 Tcf (138 MMboe) of very high quality gas.

Hartshead Resources NL (ASX:HHR) (Hartshead, HHR or the Company) is pleased to announce an upgrade in the Contingent Resources of the Anning and Somerville gas fields to Reserves following an independent technical audit of the Phase I Development Plan by ERC Equipoise Limited (ERCE). The technical and commercial audit has resulted in the compilation of a new Competent Persons Report (CPR) for the Phase I Development of the Anning and Somerville gas fields which are now designated as “Justified for Development” and therefore assigned Reserves in accordance with the June 2018 Petroleum Resource Management System (PRMS) framework of the reporting and classification of hydrocarbon reserves and resources.

CEO of Hartshead, Chris Lewis, commented:

“Delivering reserves in license 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 ASX:HHR | hartshead-resources.com.au 2 of these fields. Having this confirmed by ERCE adds significant value to Hartshead Southern Gas Basin portfolio. After sixteen 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.”

/Public Release.