Shell Farm in with CLNR8 Feb 2019 07:12
Cluff Natural Resources Plc ('Cluff' or 'the Company')
Farm out of licences P2252 and P2437 to Shell U.K. Limited
Cluff Natural Resources Plc, the AIM quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, is pleased to announce that it has entered into a binding, conditional farm out agreement ("the Farm Out Agreement") and a three month exclusive option ("the Option") with Shell U.K. Limited ("Shell") in relation to the Company's Southern North Sea Licences P2252 and P2437 respectively.
Commenting, Cluff's Chief Executive Graham Swindells said:
"We are delighted to be able to announce the farm-out of Licence P2252 and the terms of an option to farm out Licence P2437 with a partner of this standing. This partnership is a clear endorsement of the quality of the licences in our portfolio and demonstrates the Cluff technical team's ability to identify and transform overlooked or less understood opportunities.
We are particularly excited at the prospect of embarking on our partnership with Shell with both parties sharing a commitment to further development in the Southern North Sea.
Most importantly, we now have direct visibility over the route to future drilling activity, and the potential to create further significant value for shareholders.
We look forward to building our partnership with Shell and successfully developing these prospects."
P2252
· Under the terms of the Farm Out Agreement, Shell will acquire a 70 per cent. working interest in Licence P2252, and be appointed as the licence operator, in return for paying 100 per cent. of the costs of an agreed forward work programme to the earlier of 31 December 2020 or the date on which a well investment decision is made.
· Cluff will retain a 30 per cent. non-operated interest in Licence P2252.
· The agreed work programme for P2252 includes the shooting of not less than 400km2 of new broadband 3D seismic data over the Pensacola prospect in the summer of 2019, subsequent processing of new and existing seismic data and sub-surface studies required to support a well investment decision before the end of 2020.
· All costs in relation to P2252 following the well investment decision (or 31 December 2020, if earlier) will be satisfied by each party in proportion to their working interests.
· Completion of the farm out is conditional on the entering into of a Joint Operating Agreement and the obtaining of regulatory consent from the Oil & Gas Authority, subject to a six month backstop.
· P2252 contains the Pensacola prospect which is estimated to contain unaudited mean GIIP of 566 BCF (equivalent to approximately 100 mmboe).
P2437
· The Company has granted Shell the Option to acquire a 50 per cent. working interest by 30 April 2019. If the option is exercised the C
Sign In
Follow the stocks
