Ansila Energy NL’s (ASX:ANA) (OTCMKTS:PGNYF) has completed the transaction with the vendors of Hartshead Resources Limited to acquire the remaining 78.4% interest in Hartshead that it did not already own.
As a result of the transaction, Hartshead is now a wholly-owned subsidiary of ANA, which is transformed into a new UK North Sea gas development company.
The company also completed a heavily oversubscribed placement at a price of 2.5 cents per share which has raised a total of $8 million.
Ansila received strong interest from investors, including demand from a UK institutional fund manager and a UK high net-worth professional investor.
Transformed into a gas development company
Anslia chief executive officer Chris Lewis said: “The completion of this transaction and capital raise will see Ansila Energy transformed into a gas development company with ready to develop projects on the UK continental shelf.
“The next twelve months will see us invest in the planning for the Phase I field development, move the portfolio closer to production and create significant value for shareholders and stakeholders alike.
“There are multiple milestones to reach in the coming months and we look forward to progress on all fronts and keeping shareholders fully informed along the way.”
Offshore Licensing Round
Hartshead’s success in the UK’s 32nd Offshore Licensing Round resulted in the formal award of five contiguous blocks in the Southern North Sea (HRL License), with four existing discoveries totalling 354 (billion cubic feet) BCF of 2C Contingent Resources.
Out of the A$8 million raised through the placement, A$7 million enables Ansila to fully fund the work programme commitments of Phase I operations through to the preliminary field development plan submission and the additional A$1.0 million raised enables Ansila to progress work on the Phase II assets as part of a multi-phased development of existing gas discoveries.
In addition to the Phase I and Phase II fields, the awarded license area also contain a Phase III exploration portfolio with 141 BCF of 2U Prospective Resources in two drill-ready exploration prospects.
Phase 1 workstream
Work on Phase I projects is already underway and will focus on selecting the optimal development concept to take forward to the preliminary field development plan (FDP)/Front-end engineering and design (FEED) stage gate.
The Phase I FDP project will incorporate subsurface, drilling & completion, facilities, pipelines, HSE and commercial analysis and planning.
The deliverables from the project will be well placement and design, frac design, production forecasting, facilities concept framing, host facility requirements, economic analysis and development concept evaluation and selection.
In parallel with this, Hartshead plan to initiate contact with third party host facility owners to discuss access to spare capacity in order to enable transmission of Hartshead’s produced gas to the onshore gas processing facilities and sales point.
Hartshead is currently in discussions with several oil and gas field development service providers to award key project work covering the FDP project, to be carried out during the coming twelve months.
Key official appointments
As part of the transaction, existing executive directors of the company will now take on specific management roles.
Christopher Lewis has now been appointed as chief executive officer and Andrew Matharu has been appointed as a chief financial officer.
The company intends to enter into executive service agreements with Lewis and Matharu concerning these appointments on terms acceptable to the parties which are usual for executive appointments of this nature.