(Alliance News) - Shares rose in Cluff Natural Resources PLC on Friday after it said that its operations are unaffected by market uncertainty related to Covid-19 and the plunge in oil prices.
Shares in the natural resources investment company were 6.7% higher at 0.80 pence on Friday in London, retracing after starting up more than 20% at 0.92p.
Cluff said it is in a "position of relative strength", with no direct exposure to oil prices, no debt and well capitalised following a fundraising in June 2019.
At the end of February, Cluff had a cash position of GBP13.3 million.
The company said it will continue to focus on its portfolio of natural gas exploration assets in the UK, and is still working closely with joint venture partner Shell UK Ltd for several key potential value catalysts, including investment decisions on the Selene and Pensacola natural gas prospects in the Southern North Sea.
However, Cluff did note that while the Dewar farm-out process remains active, the company expects the market volatility to have an impact on the deliverability of this farm-out.
Meanwhile, the UK Oil & Gas Authority's guidance regarding the 32nd Offshore Licensing Round remains unchanged, and Cluff still expects licence awards being made in the second quarter of 2020.
"Cluff remains in a strong position from which to deliver exceptional growth. We remain fully financed for drilling activity and have multiple upcoming catalysts for growth from our existing and potentially expanding portfolio via the UK Offshore Licensing Round," said Chief Executive Officer Graham Swindells.
"Good progress is being made on our Pensacola and Selene licences with Shell as we continue to work towards well investment decisions on both licences. We look forward to updating shareholders on Selene, Pensacola, the farm out process of our Dewar prospect and new licence awards, in due course," Swindells added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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