Hartshead Resources provides quarterly report for the period ended 31 December 2022

Highlights:

• Hartshead cofurther advanced the Phase I development of Anning and Somerville Gas fields with the award of Platform and Subsea Front–Final Technical Design (FEED) Contracts with Petrofac.
• TelosNRG appointed to advise on the Phase I Development Field Development Plan (FDP).
• Assessing and securing vessels for proposed seabed and environmental geophysics and geotechnical investigations carried out.
• CCompletelyion from the initial phase of a partial sale Process with interest from a Number of potential industrial partners, a sub–Set of these received late–stage due due diligence and negotiation.
• UK applications 33approx Offshore Licensing Round has started and is progressing.
• appointment of Steve McCraith a very experienced Wells manager.
• Cash and cash equivalents at the end of the quarter $8.9 Million.

quarterly comment, Hartshead CEO Chris Lewis said:

‘first I would like to to welcome Steve McCraith on bBoard as Wells Manager, and with his valuable contributions This is already having a significant impact on the drilling required for our Phase 1 development, I am looking look forward to seeing this progression under his expert guidance and guidance.

Advances in Phase I field developmentopment goes on with always growing momentum. mechanical engineering Studies were awarded for the selected platform and pipeline development concepts that forms the technical basis for the tender for the platform construction after completion and Pipewiring contracts.

With the completed initial phase, the partial sale process has reached an important milestone and the process is now entering late–Stage due diligence and negotiations. conversations with potential partners next and i looI look forward to providing another update in the near future.

We continue our cooperation with Shell with The technical study for the haul-off is currently underway continue to further define the various technical aspects of the tie–in and the offshore and onshore facilities. I wanthank Petrofac and Shell for their continued support in this work.

Finally with Britain’s 33rdapprox License round started on 07th from October with just over three Months to prepare and submit applications was an interestbegin the QQuarter. although such tight deadlines and one special busy festive time were unexpected, as ever, the Hartshead team lay their collective shoulders to the task and we are very happy with what has been submitted. Once the tea againI have my gratitude for all of their hard work, especially over the holidays Period.

I would also like to thank the shareholders for their support so far and we look forward to it continued value creation through 2023 and beyond.’

SAWARD PRODUCTION LICENSE P2607, OFFSHORE UNITED KINGDOM (HARTIST RSOURCES 100% AND OPERATOR)

Hartshead Resourceshas provided a Overview of the company’s quarterly activities for the period ended December 31stmb 2022 (quarter, reporting period)

The Company’s Seaward Production License P2607 includes five contiguous blocks (48/15c, 49/6c, 49/11c, 49/12d and 49/17b) is located in the southern North Sea (Figure 1) with 301.5 bcf(1) from independently verified 2P reserves and 139 BC(2) of 2C conditional resources within four existing

discoveries.

PHASE I FIELD DEVELOPMENT – ANNING AND SOMERVILLE GAS FIELDS

Award of Platform and Subsea Engineering Design (FEED) contracts with Petrofac

During the Rto report Pepoch, Petrofac Facility Management Limited (Petrofac) was two excellent Contracts relating to (i) the Anning and Somerville Unmanned UAV Platform FEED Contract Minimum Facilities Jackets and Topsides and (ii) the Subsea FEED contract for the connection underwater–Pipelines connected to Shell Exploration & Production UK Limited (Shell) Corvette export System with gas transport to Lake Geneva–A complex and associated climbers about the Anne Platform. The award of the FEED contracts signals a significant milestone in Phase I development progresses from Concept Select to Concept Define, before entering the execution phase at Final Investment Decision (FID) expected to be later in 2023.

Appointment of TelosNRG Limited

TelosNRG Limited (Telos), a UK-based consultancy providing techical, QHSE and management Advisory services in the energy and renewable energy sectors, was appointed during the Rto report PAssisted and advised Hartshead in preparing the Phase I field development plan (FDP), which is expected to be submittedsubmitted to the NSTA in the first quarter of 2023.

Eenvironment Geophysical u Geotechnical SSurvey

the evaluationion from contracts for the phase I development geotechnical and geophysical surveys with a with a view to securing ships for deployment in 2023 was also performed duringg 4th quarter of 2022. The most important Survey Goalss was to provide the Company with an interpretation of the seabed geomechanical u floor Conditions on the Anning and Somerville fields Locations and along the pipeline route. The results of the geotechnical and geophysics opinion polls forms a crucial component of environmental statementwith UUnderstanding the seabed conditions at the Phase I field locations and also along the pipeline route needed for to lock the underwater and Platform FEED design assumptions.

Investment process for industrial partnerships

After the appointment of LAB Energy Advisorsannounced in June 2022, a Update deployed with LAB in Q4 2022 to adviseeng the company through industry partnerships for its Phase I development via a partial divestment process.

The enterprise reports that this is the case completed the first phase of a partial sale process Interest from a number of potential industrial partners, a sub–set of it hai.e entered the next stage of the process with further due diligence and negotiations. It is the aim of the process Securing an industrial partner and funding for the development of Phase I Anning and Somerville gas Fields.

the company remains convinced of a successful result of the LAB Energy Farm–from/partnership Litigation given the high level of interest in Hartshead’s Phase I assets, however uncertainty remains inevitable with a view to ultimately securing industry paritytner, Subject to continuation Discussions and negotiations that I hope the company can successfully conclude At the end of Q1 2023

Appointment of a highly experienced well manager

In November 2022, the enterprise announced the Appointment of Stephen McCraith as Fountain Manager within its Phase I development project management team for the southern UK gas basin.

As a very experienced Well Engineering and Drilling Manager with over 33 years experience in the UK North Sea experience, Stephen has an impressive track record of conducting large-scale drilling programs in the United States upstream oil and gas sector and brings a wealth of operational experience to Hartshead as a company enters the front–End Engineering Design (FEED) phase of Phase I developmentDevelopment of Anning and Somerville gas fields.

Stephen has spent most of his career at Shell International and Shell UK Exploration and Production in the roles of Rig Superintendent and Drilling Operations Manager, where he was responsible for all typees drilling operations, including exploration and development drilling, infill drilling, wells Testing, coiled tubing operations and other well intervention services.

Stephen has also worked for several other UK North Sea operators and service companies, including Talisman Energy, KCA Deutag Drilling and Premier Oil/Harbour Energy, in senior well engineering roles where he is responsible for the delivery of their complete UK operated North Sea and not–completed drill programs including the recent Tolmount field development in the southern UK gas basin. As a very experienced oil and gas professional with in–in-depth knowledge of offshore drilling operations, Stephen is familiar with all aspects of HSEQ and management systems related to wells Engineering activities, well integrity and security that will be critical to our Phase I development Well planning activities at the Anning and Somerville gas fields.

Stefan Hoholds a BSc(Hons) in Exploration & Mining Geology from University College Cardiff MSc in Drilling Engineering from Robert Gordon University, Aberdeen and is a Chartered Engineer.

NEW RISKS – UK 33RD OFFSHORE LICENSING ROUND

Hartshead confirms that the company wcould Participation in Great Britain 33approx Offshore Licensing Round announced by the NSTA with an application deadline of January 12, 2023. the Licensing round results and awards are expected to be announcedd later in 2023.

(1) Reserve estimates are from ERC Equipoise Limited, Independent Competent Persons Report (CPR) entitled ‘Hartshead Resources NL Somerville and Anning Competent Persons Report, June 2022. See Qualified Persons Statement for comments on reserve reporting.

(2) Estimates by Hartshead Resources management.

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Source: Hartshead Resources