PERTH, Australia — Hartshead Resources and Viaro Energy subsidiary RockRose Energy have implemented changes to their farm-out and joint operating agreements for license P2607 in the UK southern North Sea.
This gives Hartshead the option to divest an additional 20% interest in return for an uncapped free carry of all gross costs for Phase 1of the Anning/Somerville gas fields development.
The Financing Backstop could be exercised after the companies have taken FID on the project.
Hartshead CEO Chris Lewis said the company now had the capability of being able to retain its 40% interest via alternative financing, while ensuring it can progress toward project development.
Viaro Energy CEO Francesco Mazzagatti said the restructuring of the original farm-in agreement with Hartshead “provides us with complete certainty that the development of Anning and Somerville will be fully funded to completion. Giving our partner the option of a financing backstop ensures stability for the JV, a particular challenge for North Sea operators nowadays with the shrinking pool of traditional capital providers for E&P opportunities.”