Viaro Energy said its unit, RockRose Energy, has completed a farm agreement with Hartshead Resources for a 60 percent interest in production license P.2607. The license includes the Anning and Somerville fields, and Viaro added that Hartshead will retain a 40 percent interest in the license.
Viaro Energy further said the project is a phased redevelopment of gas fields located in the Southern Gas Basin. Phase 1 will see the development of the Anning and Somerville fields and Phase 2 will focus on the Hodgkin and Lovelace fields.
Anning and Somerville were originally discovered in 1969, with Somerville coming on stream in 1999 and Anning in 2008. The fields ceased production in 2015, by which time Somerville had produced 48 bcf of gas and Anning had produced 16 bcf of gas, the company. ‘, says the statement.
It is expected that a Final Investment Decision (FID) will be taken in the third quarter of 2023. From then on, the joint redevelopment of the two fields will see the drilling of six production wells, with the first gas expected for the fourth quarter of 2024 and gross maximum production. Rates of 120 mmcfd (72 mmcfd net at RockRose, or 12,000 boepd) to be achieved by 2025, Viaro Energy said.
Remaining 2P gross reserves for Anning and Somerville are reported at 301 bcf of recoverable gas (50 mmboe), with 181 bcf (30 mmboe) net at RockRose. Gross development costs are estimated to be GBP 351 million.
The deal is structured as firm consideration payable to Hartshead and partial support of the Phase 1 development costs of the Anning and Somerville fields. Further consideration payable to Hartshead is dependent on FID for the development of Phase 2. It has also been agreed that the operation of the license will be transferred to RockRose at a mutually agreed future date, the statement said.
“The partnership with Hartshead is significant for Viaro because it represents a return to the operation of our main subsidiary RockRose. After several years of careful investments, we continue to see great potential in the Southern Gas Basin, which has been one of Europe’s longest and most important sources of gas. It is easy to dismiss mature fields, but there are significant opportunities that come with introducing new energy developments to traditional gas exploration,” Francesco Mazzagatti, CEO of Viaro Energy.
“Anning and Somerville are expected to achieve first gas in the fourth quarter of 2024 and will add around 12,000 boepd to our existing production base of 25-30,000 boepd, bringing us one step closer to our target of 100,000 boepd “Mazzagatti added.
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