UK Southern Gas Basin Corporate & Operational Update

HARTSHEAD RESOURCES NL (ACN 150 624 169)

T +61(8) 9226 2011

E info@hartshead-resources.com

Level I, 89 St Georges Terrace, Perth WA 6000

PO Box Z5187, Perth WA 6831

1 March 2022

UK SOUTHERN GAS BASIN

CORPORATE AND OPERATIONAL PROGRESS REPORT

Highlights:

• Completion of the Anning field geological model providing a calculated gas‐initially‐in‐place (GIIP) volume of 2191 Bcf.
• Phase I Anning and Somerville fields GIIP volumetrics now calculated to be 5871 Bcf.
• Completion of history matching of the dynamic models of the Anning and Somerville fields enabling optimisation of frac and well placement.
• Finalisation of export route linked production forecasts to follow as key inputs to the Phase I Concept Select Report (CSR).
• Petrofac to commence multiple workstreams on emissions, HSE studies, third party Brownfield modifications for infrastructure tie‐in and pipeline routings as part of the Phase I Concept Select Reporting.
• Negotiations to secure Indicative Commercial Terms (ICTs) from gas transportation and processing infrastructure owners continue to progress.
• Phase II subsurface workstreams, covering the Hodgkin and Lovelace fields, nearing completion with revised GIIP volumetrics and production forecasts to follow.
• Invitation to Tender (ITT) issued to service companies for the following workstreams:

1. Phase I Concept Select Peer Review;

1. Technical audit of Phase I, II and III resource estimates and a new Competent Persons Report (CPR); and

1. ESG Strategy and Reporting.

Hartshead Resources NL (Hartshead, HHR or the Company) is pleased to announce the following corporate and operational update highlighting recent activity on Seaward License P2607 and the progress achieved across all three phases of the Company's portfolio.

PHASE I DEVELOPMENT - ANNING AND SOMERVILLE FIELDS

Geological reservoir modelling for the Anning and Somerville fields has now been completed by Xodus Group (Xodus). A total Phase I gas‐initially‐in‐place (GIIP) volume of 587 Bcf has been calculated - an overall increase of 18% above the previous Hartshead estimate of 496 Bcf. The revised GIIP volume is

• Hartshead Resources management estimates.

split 219 Bcf and 368 Bcf between the Anning and Somerville gas fields, respectively, with the 112 Bcf GIIP increase in the Somerville field due partly to previously unmapped extension of the field.

Anning and Somerville dynamic reservoir models (derived from the geological models above) have been history matched to the previous field production and pressure profiles. These history matched models can now be used in "prediction mode", to forecast gas flow rate and production from new planned wells on the fields. The history matched models are now being used to optimise frac design and well placement.

Results from the dynamic reservoir simulation modelling, will be combined with well geometry, facilities and export route pipeline information to forecast production from the total Phase 1 development plan. This final production forecast will be input to full field life economics as part of the Phase I Concept Select Report (CSR).

As part of the Phase I Concept Select and Report preparation and submission, Petrofac will be commencing a number of workstreams. These workstreams will include:

• A full field HSE study of shortlisted development options;
• An emissions study to generate the life of field (construction, installation, operation and decommissioning) carbon equivalent emissions for each of the greenfield facilities options and the gas offtake routes;
• Pipeline routing options and cost analysis of two potential routes;
• Provide high level summary scope of work and CapEx estimate for the host modifications required applicable to the six options for tie‐in of single pipeline arrival to Infrastructure

These workstreams will provide final input to the report to be submitted to the OGA.

The Company continues negotiations with owners of gas transportation and processing infrastructure local to the Phase I development area. Discussions with these infrastructure owners continue with a view to the receipt of indicative commercial terms (ICTs) and commencing engineering feasibility studies for the tie‐in of Hartshead's facilities and gas offtake in the near future.

PHASE II DEVELOPMENT - HODGKIN AND LOVELACE FIELDS

The Hodgkin and Lovelace fields are located in the north‐west part of License P2607 and are currently estimated to contain a combined 1391 Bcf of 2C Contingent Resources.

The Phase II subsurface workstreams are nearing completion and have resulted in the construction of a new geological and geophysical database, detailed interpretation of the new 3D seismic data and petrophysical analysis. The next steps of the work programme will include a gas‐in‐place volumetric calculation, new production forecasts for both the Hodgkin and Lovelace gas fields, and revised recoverable resource estimates (2C). Following completion of these latter workstreams a decision can be made to proceed with field development planning for the two fields. This will present the opportunity to utilise the Phase I infrastructure in order to monetise the Phase II gas production which may lead to potentially enhanced economics of the Hodgkin and Lovelace fields.

In addition, the revised 2C contingent resources at Hodgkin and Lovelace will be independently audited and the results compiled and announced as part of an updated Competent Persons Report (CPR) covering the Phase I and Phase II assets and Phase III prospect inventory.

CORPORATE

An Invitation to Tender (ITT) or request for proposal has recently been issued to a number of service providers in respect of the following workstreams:

• Phase I Concept Select Peer Review: An independent evaluation of the workstreams completed as part of the Phase I Concept Select, incorporating a Technical Audit of the resource estimates for Phase I and II fields and the Phase III exploration prospect inventory. A key deliverable from the Technical Audit will be a new Competent Persons Report (CPR).
• ESG Strategy and Reporting: To assist Hartshead in developing its ESG strategy, including the establishment of an industry standard framework for the measurement and auditing of emissions, and a reporting system to integrate into existing ASX compliance and corporate governance requirements.

Tenders have now been received and a technical and commercial bid evaluation process is being conducted to select the most suitably qualified service company for each of the above workstreams. Details will be announced in due course.

‐Ends‐

CONTACTS

The Board of Directors of Hartshead Resources NL authorised this announcement to be given to ASX.

For further information on this announcement, visit www.hartshead‐resources.com.auor contact:

Christopher Lewis

Chief Executive Officer

Andrew Matharu

Chief Financial Officer

w: +61 8 9226 2011

1. info@hartshead‐resources.com

Notes to Editors:

Hartshead Resources NL

ASX‐listed Hartshead Resources NL and is focussed on building a financially, technically and environmentally responsible European Energy business.

Hartshead's goal is to secure and invest in projects where resources can be extracted and delivered to meet Europe's growing energy demand while supporting the transition to a low carbon future.

In progressing this strategy Hartshead is focused on its 100% owned Production Seaward License P2607 comprising of five blocks which contain four existing gas fields in the UK Southern Gas Basin.

Hartshead brings together a highly experienced oil and gas team with specialised knowledge covering subsurface, engineering, commercial, QHSE and capital markets with the required skillsets needed to successfully and safely deliver oil and gas upstream projects.

UK Southern North Sea Production Seaward License P2607 - Contingent and Prospective Resources

Please refer to the qualified person's statement relating to the reporting of contingent and prospective resources on Hartshead Resources Southern North Sea License P2607 in Hartshead's ASX Announcement dated 14 December 2020 (see Schedule 3). The Company is not aware of any new information or data that materially affects the information about the contingent resource and prospective resource estimates included in this announcement and all the material assumptions and technical parameters underpinning those estimates in this announcement continue to apply and have not materially changed.

Contingent resources reported herein have been estimated and prepared using the probabilistic method.

• Volumes combined stochastically to give portfolio volume