Join our daily newsletter At The Bell to receive exclusive market insights
Energy microcap with a portfolio of offshore UK assets, Hartshead Resources (ASX:HHR), has announced the results of its latest auction bid.
In short, the company has picked up ten new O&G blocks near or around the North Sea in the UK regulator’s 33rd bidding round.
The company noted on Wednesday all assets contain either gas field re-developments, or, undeveloped (potential) gas fields.
Three blocks – 48/10, and a bundle containing 48/14d & 18/15b – are 100% owned by Hartshead. The first is an appraisal block not guaranteed to contain any hydrocarbons while the latter two are classed as field redevelopment assets.
Whether or not Hartshead has any plans to redevelop these blocks – an expensive endeavour for a microcap company with little liquidity – remains to be seen.
All other blocks are held in a JV basis, most on 50/50 grounds with partner Meridian Resources.
“To have won so many blocks with known discovered gas resources … vastly expands our portfolio and dramatically increases the number of opportunities we have [to produce gas,]” Hartshead chief Chris Lewis said.
“This takes Hartshead from being a single License company to having multiple Licenses and projects within the UK.”
For Hartshead to have any real luck, it will need to be able to persuade ASX traders (during a horrible period of local market history) to believe in it.
The company has diluted itself into a corner, with 2.8B shares on issue at 0.7cps as of market close on Tuesday and stagnant liquidity.
Hartshead has a market cap of $19.6M.
HHR closed on Tuesday at 0.7cps.
