Hansa Hydrocarbons, Partners Sanction Juliet Development

Hansa Hydrocarbons Limited, together with its partners GDF SUEZ E&P UK Ltd and First Oil Expro Limited, has sanctioned the Juliet gas field in block 47/14b in the UK Southern North Sea. First gas from Juliet is expected in 4Q 2013 with peak production from the field anticipated to be 80 MMscfd. The development will comprise two horizontal subsea wells tied back some 14 miles (22 kilometers) to the Pickerill A platform operated by Perenco UK Ltd via a 12-inch diameter export pipeline and control umbilical.

The first well is expected to be spud by 2Q 2013 with topsides and subsea construction taking place throughout 2013. Existing infrastructure will transport the Juliet gas from Pickerill A to the ConocoPhillips operated Theddlethorpe terminal on the Lincolnshire coast.

The Juliet field was discovered in 2008 and Hansa acquired its 19.00% interest in the project from First Oil in October 2010 in return for a development carry. GDF SUEZ is operator of the field and holds a 51.56% interest with First Oil holding the remaining 29.44% stake.

In addition to Juliet project sanction, Hansa announces that it has increased its license holdings in neighboring acreage through acquiring a 19.00% interest in six blocks awarded to GDF SUEZ and First Oil through the 26th Offshore Licencing Round. The blocks are held under two licenses, P1745 (Blocks 47/14c and 47/15c) and P1907 (Blocks 47/13b, 47/14d, 47/18 and 47/19b), and assignment of the latter interest remains subject to UK government consent. The final partner interests across these blocks will be the same as for the Juliet partnership creating alignment across the area.

John Martin, Hansa Hydrocarbon's CEO, said: "The sanction of the Juliet development is a major milestone for Hansa as it marks the first commercialization of our reserves base across our portfolio of projects. With production next year we can look forward to reinvesting the cash flow into our exploration, appraisal and development projects which we continue to progress. The addition of the 26th Round blocks around Juliet means we now have a core area that links Juliet with Thoresby some 28 kilometers [17 miles] to the south-east. The knowledge we have gained through the extensive technical studies we have conducted across these projects can now be leveraged into unlocking value in the prospectivity surrounding these assets."