LONDON (Alliance News) - Cluff Natural Resources PLC shares fell on Thursday as the company got an extension to complete its farm-out process, while it is also seeking funding.
The UK Oil & Gas Authority has waived its requirement for a farm-out to have been concluded by Thursday on the company's wholly owned Southern North Sea gas licences, P2248 and P2252, pushing the deadline to November's end.
The North Sea-focused natural resources explorer said the waiver will allow them to continue the farm out process with the "ultimate aim of drilling one or more wells" at the licences.
The promote period and the initial term of each licence will continue to run until the end of November, subject to a drill or drop decision being made by the end of September.
Shares in Cluff Natural Resources were down 25% Thursday to 2.72 pence each.
Chief Executive Graham Swindells said: "We are very pleased that the UK Oil & Gas Authority has granted our request to continue both of our high impact licences in the Southern North Sea gas basin, an area in which we continue to see significant value. With the UK Oil & Gas Authority's support, we are able to continue the process of securing partners and funding to drill one or more wells in 2019.
"With the addition of blocks awarded to the company in our successful application for licences in the 30th UK offshore licensing round, which has taken the estimated P50 prospective resource base in the company's portfolio to 4.3 trillion cubic feet of gas, we believe the company is in a strong position for growth."
