Earl William De Le Warr is a non- executive director for Cluffy and would appear to move in high circles he also holds around 2.5 million shares in CLNR It now seems that Linc have stopped sniffing and done one ! WHE have got to be bargain of the year for a UCG petrolhead IMHO
Algy Cluff, the seasoned natural resources entrepreneur, remains unconvinced by Cuadrilla and friends’ dash for shale gas. “Good luck to them,” he tells Diary. “But it’s not for me.” Cluff, a self-confessed “loner” who has said he wants to “guide my own destiny”, is currently ploughing a lone furrow betting the farm that turning the North Sea’s coal reserves into gas is the solution to keeping Britain’s lights on. It seems major City players agree. The largest institutional shareholders in Cluff’s offshore “coal gasification” venture, Cluff Natural Resources, are Guinness Asset Management, JP Morgan and the hedge fund Odey Asset Management, who each own more than 3pc of the £6m market cap company that Cluff claims could one day be worth £1bn. It’s still early days, but Mr Cluff has also prepared a farm-out document to pitch for potential partnerships with energy majors and engineering groups. Sir William Siemens, the first engineer of underground coal gasification, would approve.
Beaufort Securities started coverage on shares of Cluff Natural Resources PLC (LON:CLNR) in a research note released on Wednesday morning. The firm issued a speculative buy rating on the stock.
Cluff Natural Resources PLC (LON:CLNR) traded down 0.75% on Wednesday, hitting GBX 3.97. The stock had a trading volume of 191,012 shares. Cluff Natural Resources PLC has a one year low of GBX 3.01 and a one year high of GBX 5.61. The stock’s 50-day moving average is GBX 4.13 and its 200-day moving average is GBX 4.15.
Separately, analysts at Panmure Gordon reiterated a buy rating on shares of Cluff Natural Resources PLC in a research note on Tuesday. They now have a GBX 13 ($0.22) price target on the stock.
"Recent world events have further highlighted the major crisis our country faces in terms of future energy security and supply. I firmly believe a well regulated UCG industry in the UK will further diversify our primary energy supply, thereby reducing our reliance on foreign imports and exposure to fluctuations in global energy prices."
The £6 million market cap company is now commissioning the engineering and environmental studies required to support planning applications for its first demonstrator project in the UK. It recently appointed Andrew Nunn, former exploration manager of unconventional gas explorer Dart Energy, as senior project manager to help guide the portfolio through the planning and into the drilling phase. This proof-of-concept first demonstrator project will be the key to realising Cluff's vision for UCG-powered Britain.
The existing licences, awarded last year, include acreage in the Dee and Loughor estuaries, Kincardine, Largo Bay and North Cumbria while the new awards are Durham North and Durham South off the coast of County Durham and Maryport, off the coast of Cumbria.
In all the new licences, which lie in former coal mining areas with significant historical datasets, total 30,393 hectares. Cluff has 100 per cent of all its licences. All have been chosen for their known coal and for their proximity to areas with industrial activity and large energy demand.
“It is well known that coal seams extend into the offshore waters around the UK and the technology now exists to develop the UK's most abundant indigenous energy source,” said Cluff, who is chairman and chief executive of his eponymous company.
This technology – which is proven onshore elsewhere in the world – turns dirty coal into a clean-burning syngas using an environmentally clean and safe process that does not involve the use of chemicals or fresh water. And it seems there's plenty of coal on the UKCS – Cluff knows this having found it in cores when he was wildcatting for oil in the early days of North Sea exploration.
The offshore bit is the unknown part of the equation, which is why AIM-quoted Cluff Natural Resources is targeting near-shore licences so it can drill into the subsea coal seams using deviated wells drilled from the shore, with the produced syngas then piped back to shore.
The company, which is also scouting for conventional oil and gas opportunities in Africa, another traditional hunting ground for its founder, has been busy acquiring suitable sites and was recently awarded three additional underground coal gasifications (UCG) licences off the coasts of northern England, taking its portfolio of UCG licences to eight, and covering a total area of more than 61,000 hectares.
I was on a canal barge with little or no Leccy , bloody missed that one!!
Panmure Gordon notes that Cluff Natural Resources (LON:CLNR) has been awarded a further three Underground Coal Gasification (UCG) licences taking the total number of UCG licences held by CNR in the UK to eight. These licence awards almost double CNR's UCG net acreage to 61,274 hectares. “Given the extremely high risk factor we believe that the market is applying to CNR's value potential, there is scope for significant outperformance on any signs of real progress toward this endeavour.”
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