Hartshead Resources NL : NSTA Positively Concludes Evaluation of Phase I Development

HARTSHEAD RESOURCES NL (ACN 150 624 169) T [phone]

1. [e-mail]

Level I, 89 St Georges Terrace, Perth WA 6000 PO Box Z5187, Perth WA 6831

For personal use only

21 July 2022

NSTA (UK government regulatory) positively concludes evaluation of

Phase I Concept Select Report with Issuing of Letter of No Objection

Highlights:

• A Letter of No Objection has been received from UK North Sea Transition Authority (NSTA) for Phase I Development Concept of Anning and Somerville fields.
• The Letter finalises the "Assessment Phase" of the Anning and Somerville field development concept and provides Hartshead with permission to prepare and submit a Field Development Plan.

Hartshead Resources NL (ASX:HHR) (Hartshead, HHR or the Company) is pleased to announce that it has received a "Letter of No Objection" (Letter) from the North Sea Transition Authority ("NSTA") in respect of the development concept for the Phase I development of the Anning and Somerville gas fields.

The letter acknowledges receipt of the Concept Select Report (CSR) submitted in accordance with the NSTA's "Requirements for the planning of and consent to UKCS field developments guidance".

The Letter follows a review of the "Concept Select Report - P2607 Phase I Development Anning & Somerville", submitted to the NSTA (announced on 30 May 2022), and indicates the finalisation of the "Assessment Phase", entry into the "Authorisation Phase", and provides no objection to the Company preparing a Field Development Plan (FDP) for the Anning and Somerville fields as described in the Concept Select Report.

The selected development concept submitted within the CSR consists of six production wells from two wireline capable Normally Unmanned Installation (NUI) platforms at Anning and Somerville, which have been classified to hold combined 2P Reserves of 301.5 Bcf1 (52 MMboe) of gas following an independent technical and commercial audit by ERC Equipiose . These platforms will then connect via a subsea pipeline to third party infrastructure for onward transportation and processing to entry into the UK gas transmission network.

1 Reserves estimates are from ERC Equipoise Limited, Independent Competent Persons Report (CPR) entitled "Hartshead Resources NL Somerville and Anning Competent Persons Report" released on ASX on 23 June 2022. See Qualified Persons Statement for reserves reporting notes.

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Given the receipt of the Letter from the NSTA the Company now intends to progress its Phase I development through the Front-End Engineering & Design (FEED) stage and submission of a FDP prior to the final investment decision (FID).

Ends-

CONTACTS

The Board of Directors of Hartshead Resources NL authorised this announcement to be given to ASX.

For further information on this announcement, visit www.hartshead-resources.com.auor contact:

Christopher Lewis	Jane Morgan
Chief Executive Officer	Investor and Media Relations
Andrew Matharu	w: [phone]
Chief Financial Officer	e: [e-mail]

w: [phone]

1. [e-mail]

For further information and to stay up to date with Company developments, please follow us on social media by clicking the links below:

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Notes to Editors:

Hartshead Resources NL

ASX-listed Hartshead Resources NL is focussed on building a financially, technically and environmentally responsible European Energy business.

Hartshead's goal is to secure and invest in projects where resources can be extracted and delivered to meet Europe's growing energy demand while supporting the transition to a low carbon future.

In progressing this strategy Hartshead is focused on its 100% owned Production Seaward License P2607 comprising of five blocks which contain four existing gas fields in the UK Southern Gas Basin.

Hartshead brings together a highly experienced oil and gas team with specialised knowledge covering subsurface, engineering, commercial, QHSE and capital markets with the required skillsets needed to successfully and safely deliver oil and gas upstream projects.

UK Southern North Sea Production Seaward License P2607 - Reserves, Contingent and Prospective

Resources

Please refer to the qualified person's statement relating to the reporting of reserves on Hartshead Resources Southern North Sea License P2607 in Hartshead's ASX announcements dated 23 June 2022.

Please refer to the qualified person's statement relating to the reporting of contingent and prospective resources on Hartshead Resources Southern North Sea License P2607 in Hartshead's ASX announcements dated 6 April 2022 and 8 March 2022.

The Company is not aware of any new information or data that materially affects the information about the contingent resource or prospective resource estimates included in this announcement and all the material assumptions and technical parameters underpinning those estimates in this announcement continue to apply and have not materially changed.

RESERVES2

						1P	2P	3P
		49/17b	Anning
		Sales Gas (Bcf)	73	145.0	245
					Condensate (MMbbl)	0.081	0.192	0.375
	PHASE I
	49/17b	Somerville	Sales Gas (Bcf)	107.0		213
		156.5
		Condensate (MMbbl)	0.119		0.325
					0.208
					Total (MMboe)	31.2	52.4	79.7

2 Reserves estimates are from ERC Equipoise Limited, Independent Competent Persons Report (CPR) entitled "Hartshead Resources NL Somerville and Anning Competent Persons Report" dated June 2022. See Qualified Persons Statement for reserves reporting notes.

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CONTINGENT RESOURCES3 (BCF)		1C		2C			3C	GCoS
	49/6c, 49/11c	Lovelace	14		39		70	100%
PHASE II
48/15c	Hodgkin	35		100		387	100%
PROSPECTIVE RESOURCES4 (BCF)		1U		2U			3U	GCoS
	49/17b	Garrod	16		52		125	50%
	49/17b	Ayrton	25		74		146	41%
	49/17b	McLaren	18		27		39	54%
	49/17b	Stephenson	36		47		60	43%
	49/17b	Widdowson East	6		29		79	32%
	49/17b	Widdowson Central	11		21		40	50%
PHASE III	49/17b	Lonsdale	5		16		31	50%
EXPLORATION	49/17b	Anderson	5		12		29	45%
	49/12d	Wenlock Prospect 1	4		19		55	36%
	49/12d	Wenlock Prospect 2	1		5		19	36%
	49/11c	Wenlock Prospect 3	1		5		17	36%
	49/11c	FFs Prospect 1	3		11		26	41%
	49/11c	FFs Prospect 2	8		19		37	35%
	49/11c	FFs Prospect 3	4		9		17	34%

Forward Looking Statements

This document has been prepared by Hartshead Resources NL (HHR). This document contains certain statements which may constitute "forward-looking statements". It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve and resource estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and

1. Hartshead management estimates
2. Prospective resources are estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) and relate to undiscovered accumulations. These prospective resources estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

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financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates.

HHR's operations and activities are subject to regulatory and other approvals and their timing and order may also be affected by weather, availability of equipment and materials and land access arrangements. Although HHR believes that the expectations raised in this document are reasonable there can be no certainty that the events or operations described in this document will occur in the timeframe or order presented or at all.

No representation or warranty, expressed or implied, is made by HHR or any other person that the material contained in this document will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of HHR, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this document and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this document or any error or omission there from. Neither HHR nor any other person accepts any responsibility to update any person regarding any inaccuracy, omission or change in information in this document or any other information made available to a person nor any obligation to furnish the person with any further information.

Qualified Person's Statement

The Reserves estimated in this announcement have been made by Dr Adam Law, Director, ERC Equipoise (ERCE), a post-graduate in Geology, a Fellow of the Geological Society and a member of the Society of Petroleum Evaluation Engineers. Dr Adam Law is qualified in accordance with ASX listing rule 5.41 and has consented to the use of Reserves estimates, and to the form and context in which these statements appear.

ERC Equipoise Ltd. (ERCE) is a leading, employee owned, global energy consultancy headquartered in London with offices in Singapore, Kuala Lumpur and Perth. It's fully integrated team of Geoscientists, Engineers and Economists are specialists in Competent Persons reporting, reserves and resources auditing, technical services, commercial analysis and Expert advisory services. ERCE supports companies in traditional energy sectors as well as providing energy transition and sustainability services.

The Reserves estimates presented in this report were originally disclosed to the market in announcement released on 23 June 2022.

The information in this announcement that relates to Reserves estimates is based on information compiled or reviewed by Mr Christopher Lewis. Mr Lewis has consented to the form and context in which the estimated Reserves and the supporting material are presented.

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