Cluff has UK Gas Licences Extended

UK-listed Cluff Natural Resources has had its  two wholly-owned UK southern North Sea Gas licences, P2248 and P2252, extended for another year.

In total they contain an estimated 2.4 trillion ft³ on a P50 basis. There is a carboniferous play analogous to the large Ravenspurn field, a little to the south of P2248 The extensions are subject to the achievement of certain milestones: Cluff needs to find a farm-out partner by May 31, leading to a drill or drop decision by September 3o.

Cluff says it has received a significant level of interest from a number of parties viewing the data room for the farm-out process in respect of P2248 and P2252, and CLNR remains in dialogue with those companies who have shown interest in the portfolio to date, it said. Finance director Graham Swindells said that reflected the deal-making that has been happening in the North Sea lately, with players like Ineos, who need gas for their industrial processes, becoming one of the biggest producers almost overnight. "The macro factors for UK gas are very favourable," he told NGW.

CEO Algy Cluff said the extension "ensures that we will be able to continue our farm-out negotiations from a stronger position, which increases the probability of the drilling of one or more wells on our licences. In the meantime, we have submitted our applications for further licences in the current UK Offshore Licensing Round which are due to be announced in Q2 2018, as well as continuing to assess additional investment opportunities. Our immediate priority, however, remains the creation of value for shareholders by securing the investment required to drill our two highly prospective P2248 and 2252 licences, and we are in discussions with potential farm-in partners in this regard.”