RockRose Energy, a wholly owned subsidiary of the Viaro Energy Group, has agreed to acquire 60% stake in the License P2607 in the UK Southern Gas Basin, from Hartshead Resources.
The deal has a total gross consideration of about A$196.3m which includes reimbursement of past costs, bonus milestone payments, a partial carry on HHR’s share of development costs, and UK government Investment & Capital Allowance of $48.4m.
Hartshead operatorship in the License P2607 is planned to be transferred to RockRose ‘at a mutually agreed future date’.
The Licence P.2607 comprises five blocks in Quads 48 and 49 on the UK Continental Shelf, in the Southern Gas Basin. It involves phased development of fields.
The first phase involves the Anning and Somerville fields while the second phase covers the Hodgkin and Lovelace gas fields.
Hartshead expects the farm-out to materially de-risking the project while providing pathway to the project’s full financing and development.
Hartshead CEO Chris Lewis said: “The successful execution of a farm-out agreement with RockRose materially de-risks the Phase I development of the Anning and Somerville gas fields by securing over $536m of gross project expenditure, provides technical and commercial validation of our gas development and implies a material uplift in value for the project.”
Upon closing of the transaction, which is subject to conditions including government approval, the P2607 Joint Venture partners plan to sign a joint operating agreement (JOA).