Hartshead Resources NL has entered a binding agreement to be acquired by ACAM for approximately A$40 million, offering shareholders a 133% premium and certainty amid UK gas project risks. The deal advances development of the P2607 gas fields with strong backing from partners and regulators.
- Binding Scheme Implementation Deed signed with ACAM for full acquisition
- Cash offer of A$0.014 per fully paid share, 133% premium to last close
- Hartshead valued at approximately A$40 million fully diluted
- Strong balance sheet with over A$22 million cash at quarter end
- Ongoing development of P2607 Joint Venture gas project with Rockrose Energy
Deal Overview and Shareholder Benefits
Hartshead Resources NL (ASX, HHR) has taken a decisive step to crystallise value for its shareholders by entering into a binding Scheme Implementation Deed with ACAM LP, under which ACAM will acquire 100% of Hartshead's shares. The all-cash offer values Hartshead at approximately A$40 million on a fully diluted basis, representing a substantial 133% premium to the company's last closing share price. Shareholders will receive A$0.014 per fully paid share and a proportional amount for partly paid shares, providing immediate liquidity and certainty amid the inherent risks of gas project development.
Strategic Position and Project Development
The acquisition comes as Hartshead continues to advance its P2607 Joint Venture in the UK Southern Gas Basin, focusing on the Anning and Somerville gas fields. The project holds significant value with 300 billion cubic feet (Bcf) of gas reserves earmarked for Phase 1 development and up to 800 Bcf in total prospective resources. Hartshead's partnership with Rockrose Energy, a committed and motivated joint venture partner, strengthens the project's technical and operational foundation.
Financial Health and Funding Innovations
Despite being a junior company, Hartshead maintains a robust balance sheet, reporting over A$22 million in cash at the end of the December 2025 quarter. The company is actively exploring innovative funding arrangements to finance critical infrastructure for gas production and transportation to the UK market. Notably, there is potential for third-party investment to cover some infrastructure costs, with returns generated through tariffs paid by Hartshead, thereby reducing upfront capital expenditure and optimising cash flow.
Regulatory and Market Context
Hartshead benefits from strong support from the UK oil and gas regulator and continues productive discussions with political stakeholders, unions, and industry bodies to foster a conducive regulatory environment. The UK and European gas markets remain robust with long-term demand, underpinning the strategic importance of the P2607 assets. The company has also secured a two-year extension on the initial term of the P2607 licence, allowing for completion of the Phase C work programme despite supply chain and permitting delays.
Next Steps and Board Recommendation
The Scheme is subject to shareholder approval, court sanction, and an Independent Expert's report, with an indicative timetable targeting implementation by mid-2026. The Hartshead Board, holding over 10% of shares, unanimously recommends the Scheme in the absence of a superior proposal, viewing it as a compelling outcome that de-risks shareholder investment and delivers significant value. Shareholders will receive detailed information in the forthcoming Scheme Booklet and have the opportunity to vote at the Scheme Meeting.
Bottom Line?
As Hartshead moves toward shareholder and court approvals, the market will watch closely how this deal reshapes its UK gas ambitions and shareholder returns.
Questions in the middle?
- Will the Independent Expert endorse the Scheme as being in shareholders' best interests?
- How will innovative funding arrangements impact the project's capital structure and timelines?
- Could a competing proposal emerge before the Scheme Meeting, altering the acquisition dynamics?