Hartshead Resources NL announced the following operational update with respect to the Company's Phase I gas field development. The recoverable gas volumes are from production forecasts (deterministic) that have been generated based on the range in GIIP volumes, new reservoir simulation models, optimized frac placement, well trajectories and a new network model assuming connection via third party infrastructure to Bacton Gas Processing Terminal (Bacton). Hartshead is currently in commercial and technical discussions with a third party, regarding a jointly identified tie-in point, into the third parties infrastructure, for onward transportation to the Bacton.

This infrastructure, with associated capacity, availability and pressures formed the basis of the Phase I gas transportation network model. Hartshead and the third party are currently jointly developing a scope of work for the next stage of engineering work to define the subsea pipeline connection, platform modification and other works required for the tie-in. The new Phase I field development production forecasts have resulted in a revision to Hartshead's estimate of the recoverable resources for the Anning and Somerville fields, which can be compared against with the existing audited 2C contingent resources of 217 Bcf for the Phase I development.

The increase in place volumes is due to revised subsurface interpretation. The increase in recoverable volumes is due to in the increase in in-place volumes and optimized frac placement to increase recovery factor.