LONDON (Alliance News) - Cluff Natural Resources PLC said it is planning to raise at least GBP15 million via a placing and subscription to fund well costs and invest in its licences.
Stifel Nicolaus Europe Ltd is acting as bookrunner for the placing and Allenby Capital Ltd will act as nominated advisor for the fundraise, which is priced at 1.75 pence per share.
The number of placing shares will be determined by Stifel and natural resources investor Cluff and proceeds will fund Cluff's share of costs on the Selene and Pensacola prospects, in which it holds a 50% and 30% working interest respectively. The prospects are both located in the Southern North Sea Gas Basin with remaining interest held by Royal Dutch Shell PLC.
Cluff will also use the money to invest in its other North Sea licences, as well as for future licence awards, "and for general, working capital and corporate purposes".
Cluff Chief Executive Graham Swindells said: "We are delighted to announce this transformational fundraising which will fully fund the company to drill its two high-impact wells with Shell at Selene and Pensacola while also allowing us to continue to further expand and de-risk the rest of our portfolio. This fundraising allows us to build on the recent success achieved with the substantial expansion of our portfolio of licences in the last UK licensing round as well as the introduction of Shell as a partner on two of our licences.
"Our company is now entering an exciting operational phase of its growth with line of sight over the drilling of at least two wells in the Southern North Sea while continuing to grow and diversify our portfolio of highly prospective oil and gas assets."
