27 Sep 2018 15:34
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
27 September 2018
Cluff Natural Resources Plc / Index: AIM / Epic: CLNR / Sector: Natural Resources
Cluff Natural Resources Plc ('CLNR' or 'the Company')
Licence Update on P2252 & 2248
Cluff Natural Resources Plc, the AIM quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern North Sea gas basin, is pleased to announce that it has recently updated the UK Oil and Gas Authority ("OGA") on its farm out processes for the P2248 and P2252 licences. As a result, the OGA is not proposing to enforce the previously stated milestone whereby a drill or drop decision was needed to be made by 30 September 2018.
Accordingly, both the Promote Period and the Initial Term of both licences will continue to run until 30 November 2018. This will allow the Company to continue the ongoing farm out process and continue to explore various additional forms of financing which will support its aim of drilling one or more wells on these licences.
In recent weeks the Company has experienced a significant increase in the level of interest in the Company's licences and has welcomed a number of new parties, including established North Sea operators, into its data room. While providing these new entrants sufficient time to evaluate the opportunities available, the Company is continuing discussions with several parties who have previously indicated an interest in the assets. Whilst there can be no guarantee that any of these discussions will have a positive conclusion, the Company remains confident of being able to secure a successful outcome from the farm out process and looks forward to providing a further update in due course.
Commenting CLNR's Chief Executive Graham Swindells said:
"In a period of rising oil and gas prices, the industry has experienced a rapid shift in focus from cash preservation and production maintenance towards investing in exploration and reserves replacement activity. This shift in momentum towards investing in North Sea exploration is having a positive impact on our farm-out process and we remain confident of being able to achieve our ultimate aim of securing the necessary partners and investment to allow wells to be drilled on these two licences."
"We have also commenced our work program in relation to the six new licences awarded to the Company in the 30th UK Offshore Licensing Round with preliminary estimates increasing estimated P50 prospective resource within the Company's portfolio to 4.3 TCF of gas. We are excited about the potential associated with these new licences but remain focussed on our immediate aim of concluding a successful farm out of licences P2248 and P2252."
**ENDS**
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Notes to Editors
Cluff Natural Resources is a natural resources investing company listed on the AIM market on the London Stock Exchange (CLNR.L) primarily focussed on the Southern North Sea gas basin, with a high impact portfolio of operated, high working interest exploration and appraisal assets.
The Company has 100% of Licenses P2248 and P2252 in the North Sea gas basin with a significant P50 prospective resource base of 2.4 TCF across 11 prospects with chances of success ranging from 9 to 49%.
On 23 May 2018, the Company was provisionally awarded an additional 10 blocks in the Southern and Central North Sea by the UK Oil and Gas Authority in the UK's 30th Offshore Licencing Round. These blocks contain oil as well as gas prospects and are estimated to contain an additional 1.9 TCF of P50 prospective resource, taking the Company's total resource base to 4.3 TCF.
Cluff Natural Resources is focused on extracting much needed gas from the North Sea to supply the UK's energy mix which is currently heavily reliant on foreign supply. The Company is focussed on securing partners and funding to embark on a drilling campaign on the proven fairways of the Southern North Sea basin in 2019.
The Company has a strong institutional investor base and a portfolio which offers a unique opportunity of high quality, low risk and low-cost drilling prospects with potentially high impact results in an area where recent exploration has targeted both mature and new plays and has resulted in large discoveries.