LONDON (Alliance News) - Cluff Natural Resources PLC on Friday said it plans to raise GBP750,000 to begin evaluation of licenses that maybe awarded in the latest offshore licensing round.
The natural resources investing company said it will issue 46.9 million shares at a price of 1.60 pence each. The stock was trading at 1.95p per share on Friday.
Cluff Natural Resources said it expects that the proceeds of the subscription will fund the company through to middle of the fourth quarter of 2018 and it will use money to begin evaluation of any additional licences, which can be awarded in the 30th offshore licensing round.
The group said it made "substantial" application for licenses over multiple blocks on the Sothern North Sea, which contain a number of drilled discoveries, undrilled prospects and leads. Cluff Natural Resources believes that these licesnses, if awarded, have the potential to further diversify its portfolio and significantly enhance resource base.
The awards are expected to be made before the end of the second quarter of 2018.
In addition, the company will spend funds on well design and planning development for a prospective multi-well drilling programme in 2019 on key exploration targets in the depleted Esmond gas field in the Sothern North Sea.
Following the admission, the company will have a total of 442.9 million shares.
"Your board attaches high importance to the 30th round and believes that it will herald a new era of exploration and development in the UK North Sea," said Chairman Algy Cluff.
"The board of Cluff Natural Resources believes that the company's balance sheet should be strengthened in anticipation of favourable consideration being given by the UK oil & gas authority to our application for licenses, primarily in the prolific Southern North Sea gas basin," Cluff added.
