Viaro's RockRose Grabs Stake in Anning and Somerville Fields

Viaro Energy said that its unit, RockRose Energy, has completed a farm-in agreement with Hartshead Resources for a 60 percent working interest in Production License P.2607. The license includes the Anning and Somerville fields, with Viaro adding that Hartshead will retain a 40 percent working interest in the license.

Viaro Energy further said the project is a phased redevelopment of gas fields located in the Southern Gas Basin. Phase 1 will see the development of the Anning and Somerville fields and Phase 2 will focus on the Hodgkin and Lovelace fields.

Anning and Somerville were both originally discovered in 1969, with Somerville coming onstream in 1999 and Anning in 2008. The fields ceased production in 2015, at which point Somerville had produced 48 bcf of gas, and Anning had produced 16 bcf of gas, the company’ statement reads.

It is expected that a Final Investment Decision (FID) will be taken in the third quarter of 2023. Thereafter the joint redevelopment of the two fields envisages six production wells being drilled, with first gas expected in the fourth quarter of 2024 and gross peak production rates of 120 mmcfd (net 72 mmcfd to RockRose, or 12,000 boepd) being achieved in 2025, Viaro Energy said.

Gross remaining 2P reserves for Anning and Somerville are reported at 301 bcf of recoverable gas (50 mmboe), with 181 bcf (30 mmboe) net to RockRose. Gross development costs are estimated to be GBP 351 million.

The deal is structured as a firm consideration payable to Hartshead, and a partial carry of the Phase 1 development costs for the Anning and Somerville fields. A further consideration payable to Hartshead is contingent upon the FID for the development of Phase 2. Additionally, it has been agreed that operatorship of the license will transfer to RockRose at a mutually agreed future date, the statement reads.

“The partnership with Hartshead is significant for Viaro because it marks a return to operatorship for our main subsidiary RockRose. After several years of careful investments, we continue to see great potential in the Southern Gas Basin, which has been one of the most important and longest-standing sources of gas in Europe. It is easy to discard mature fields, but there are significant opportunities that come with introducing new energy developments to traditional gas exploration,” Francesco Mazzagatti, CEO of Viaro Energy.

“Anning and Somerville are expected to reach first gas in the fourth quarter of 2024 and will contribute around 12,000 boepd to our existing production base of 25-30,000 boepd, taking us a step closer to our 100,000 boepd target,” added Mazzagatti.

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