Cluff Natural Resources plc Pre-close Update (1718U)
16 January 2017 - 6:00PM
UK Regulatory
TIDMCLNR
RNS Number : 1718U
Cluff Natural Resources plc
16 January 2017
Cluff Natural Resources Plc / Index: AIM / Epic: CLNR / Sector:
Natural Resources
16 January 2017
Cluff Natural Resources Plc ('CLNR' or 'the Company')
Pre-close Update
Cluff Natural Resources Plc, the AIM quoted natural resources
investing company, is pleased to announce a pre-close update for
the financial year to 31 December 2016.
During the course of 2016, the Company made major progress in
advancing its Southern North Sea gas assets. Early in the year, the
Company took the decision to concentrate its investment on its two
most prospective assets (100% owned licences P2252 and P2248) and
was granted a one year extension for these two licences to November
2017, while relinquishing its other less prospective licences.
Investment in geological and technical work throughout the year
culminated in the Company publishing a Competent Persons Report on
Licence P2248 in October 2016 which indicated an increase in P50
net prospective resource on that licence to 1.73 TCF of gas
(equivalent to just under 300 million barrels of oil). Following
further technical work involving Halliburton (with whom the Company
has extended its MOU to February 2018) in December 2016 the Company
announced a resource update on the Zechstein prospects located on
Licence P2252, indicating a significant increase in P50 Prospective
Resources from 162 BCF to 636 BCF (equivalent to 110 million
barrels of oil).
As a result of this work, the Company increased its total
combined P50 Prospective Resources from 845 BCF of gas to 2.37 TCF
(approximately 410 million barrels of oil equivalent).
The Company continues to hold an option over 25% of Licences
P2156 and P1944 in the Moray Firth containing the Fynn & Penny
prospects, which the operator estimates could contain approximately
220 million barrels (55 million net) of potentially recoverable
oil.
Farm-out
The Company is now focussed on attracting industry partners in
order to ultimately fund the drilling of one or more wells on its
two production licences in the Southern North Sea.
The farm-out process has now formally commenced and the data
room has been opened. While at an early stage, the Company has so
far had an encouraging response from a number of potential farm-in
partners.
Board appointment
In December 2016, the Company strengthened the Board with the
appointment of Mr Mark Lappin as a Non-Executive Director. Mark has
been in the oil and gas industry for over 35 years and has held
positions with major companies, most recently at Centrica. His
technical and commercial experience will be invaluable as the
Company enters the next stage in its development.
Funding
Having completed a fundraising of GBP1.8 million (before
expenses) in November 2016, the Company is now well placed to fund
the next stage in the Company's development. As at 31 December
2016, the unaudited cash position of the Company was GBP1.7
million.
Outlook and Strategy
The Company's priority for 2017 is to secure the farm-out of one
or more of its key prospects. However, at the same time, the
Company is continuing to quantify and de-risk known leads and
prospects on both existing licences. A further application has been
made for a licence in the UK's 29(th) Licencing Round and the
Company plans to participate in the 30(th) Licensing Round which is
expected to be opened in H1 2017. The Company will also continue to
look at opportunities to expand and diversify its asset base, with
a view to creating a balanced portfolio of oil and gas assets.
The Company also continues to benefit from having no debt and
relatively low work commitments associated with its licences.
Commenting, CLNR's Chairman and Chief Executive Algy Cluff said:
"While 2016 was another challenging year for the natural resources
sector as a whole, we believe that the outlook has greatly improved
both for the sector and the Company. We have made significant
progress in 2016 on a number of fronts, not least the near trebling
of our estimated prospective resource base. In particular, we were
delighted to be able to publish our revised CPR demonstrating the
potential of our Licence P2248 and to follow this up by securing
funding for the coming year. We anticipate expanding our portfolio
in 2017 and are confident that our enhanced understanding of our
existing licences will facilitate the process of attracting
farm-out partners with the ultimate aim of drilling one or more
wells on these highly prospective assets."
**ENDS**
For further information please visit
www.cluffnaturalresources.com or contact the following:
Cluff Natural Resources Plc Tel: +44 (0) 20 7887
2630
Algy Cluff / Graham Swindells
/ Andrew Nunn
Allenby Capital Limited (Nominated Tel: +44 (0) 20 3328
Adviser & Broker) 5656
David Hart / Alex Brearley /
Asha Chotai (Corporate Finance)
Chris Crawford / Katrina Perez
(Corporate Broking)
St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
Lottie Brocklehurst / Frank Buhagiar
(Financial PR)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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