LONDON (Alliance News) - Cluff Natural Resources PLC on Wednesday said it signed an exclusivity agreement with an undisclosed international oil and gas firm on licence P2252.
Cluff shares were trading up 12% on Wednesday at 2.50 pence each.
The P2252 licence is located to the north west of the Breagh gas field in southern North Sea. Exclusivity has been granted to the undisclosed partner, subject to a definitive farm out agreement being entered by the end of January and completion by February 28.
"We are delighted to have selected a highly regarded international oil and gas major as our preferred partner for P2252," said Cluff Chief Executive Graham Swindells.
In addition, the company said the UK Oil & Gas Authority has confirmed the extension of both the P2252 and P2248 licences for six months to the end of May.
P2248 is located to the west of the depleted Esmond and Pegasus gas fields in southern North Sea.
The extension is subject to Cluff completing a seismic and well work programme on the Pensacola prospect, a part of the P2252 licence, by the end of February.
The company is also committed to drill one or more wells on the P2248 licence.
Cluff said it is currently seeking to complete the farm out process on both licenses as it is in an advanced negotiations with its preferred bidder, on a non-exclusive basis.
"With the UK Oil & Gas Authority's support, we are now able to continue discussions to secure partners in an oil & gas sector with an improved appetite for high impact exploration and an increasingly positive outlook for the North Sea," added Swindells.
