(Alliance News) - Cluff Natural Resources PLC on Monday said it will look for a farmout at the Dewar prospect to help fund future exploration.
An early feasibility study of Dewar, in the North Sea, suggested a viable two-well development scenario which would tie back to BP PLC's Eastern Trough Area processing facility.
In this scenario, Dewar has a post-tax net present value of GBP555 million and a post-tax internal rate of return of 123%.
Dewar, on licence P2352, is estimated to hold up to 272 million barrels of light oil, and is located in 90 metres of water. Exploration well costs are forecast at around GBP17 million gross.
Cluff Chief Executive Graham Swindells said: "The Dewar prospect represents a significant and valuable exploration target which is located in close proximity to existing production infrastructure.
"The successful farm-out of two of our Southern North Sea licences to Royal Dutch Shell PLC earlier this year has led to a growing recognition of our technical team within the industry and provides a great platform from which to launch this next farm-out process."
The Shell farmout covered licence P2252, also located in the North Sea.
Shares were trading at 1.72 pence each midday Monday, up 1.1%.
BP (BP.)
