UK-based energy company Viaro Energy said Thursday that following approval from the UK North Sea Transition Authority (“NSTA”), all conditions have been met to complete the farm-in agreement with Hartshead Resources Ltd., as announced on April 5, 2023.
Viaro’s subsidiary, RockRose Energy has acquired a 60% working interest in Licence P.2607 in the Southern Gas Basin in the North Sea, in which Hartshead is undertaking a phased redevelopment of previously producing gas fields.
Hartshead said last month that a total consideration to Hartshead as part of the deal was up to $128 million for Phase 1 and $5.9 million for Phase 2.
A Final Investment Decision (“FID”) for Phase 1, which includes the redevelopment and drilling of the Anning and Somerville fields, will be taken in Q3 2023. Six production wells are planned and are forecast to come on stream in early 2025 at gross peak production rates of 140 mmcfd (net 84 mmcfd to RockRose, or 14,000 boepd), Viaro said.
Francesco Mazzagatti, CEO of Viaro Energy, said: “We are thankful to the NSTA for the swift approval of the transfer of a 60% stake in Licence P.2607 to our operating subsidiary RockRose, as I believe it shows serious commitment to the overall security of the UK’s domestic energy supply on both sides. Concluding an agreement like this can take several months, so I am pleased that we have managed to do it in just four weeks.
The NSTA has made it a priority to support companies that materially contribute to the economic recovery of clean domestic oil and gas assets, and whose actions are in line with the government initiative to reduce carbon emissions. Viaro remains dedicated to these same goals, and the efficiency with which the Hartshead deal has been realised serves as proof of that.”
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