LONDON (Alliance News) - Cluff Natural Resources PLC on Thursday said it has completed the cross assignment of equity positions in two contiguous licence areas in the southern North Sea with Simwell Resources Ltd and Burgate E&P Ltd.
The natural resources investing company said the decision to combine equity positions was taken following the identification of a large carboniferous gas prospect which extends across the boundary of the two licences.
Prior to the cross assignment, Cluff held a 100% interest in licence P2253 while Simwell held a 90% interest in licence P2258, with the remaining 10% held by Burgate.
Following the cross assignment, Cluff now holds a 50% interest in both licences while Simwell holds 45% and Burgate holds 5%.
Cluff said it expects technical work to refine the potential in-place and recoverable gas volumes associated with the prospect to be completed over the coming months.
There is no consideration or recovery of back costs associated with the cross assignment, but all future costs will be shared in line with the new equity positions.
"This zero cost strategic agreement increases CLNR's footprint in the Southern North Sea and enables the effective appraisal and potential development of what could be a significant new gas field. We look forward to working with Simwell and Burgate in the coming months to complete the technical evaluation of these assets," Chairman and Chief Executive Algy Cluff said in a statement.
Shares in Cluff were down 1.9% on Thursday morning at 1.30 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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