Cluff Says Scottish Moratorium Will Hit Timing Of Kincardine Project

LONDON (Alliance News) - Cluff Natural Resources PLC said Thursday that the Scottish government's decision to introduce a moratorium on underground coal gasification justifies its decision to hold off on committing to further expenditure at its project at Kincardine, as it will "clearly affect" the timing of the project's development.

Scotland's review of the environmental implications of gasification is likely to conclude in spring 2017. The company had previously warned in its interim results about uncertainty surrounding a potential moratorium, which would likely delay development of the project. As a result it had opted to "await clarity on these matters before committing to further major expenditure to support a planning application."

The company expressed confidence that the outcome of the Scottish government's review of underground coal gasification will be consistent with conclusions reached by the UK government, and there will be "no insurmountable technical and environmental issues" associated with the operation of such a project. However, development of the Kincardine project and investment in underground coal gasification will be on hold, at least until the moratorium is lifted.

Cluff said it will focus on the development of its 11 conventional gas locks in the southern North Sea.

Shares in Cluff were up 0.1% at 3.88 pence Thursday afternoon.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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