Cluff Natural Resources plc Operations Update - Licence P2248 (6181G)
31 May 2017 - 4:00PM
UK Regulatory
TIDMCLNR
RNS Number : 6181G
Cluff Natural Resources plc
31 May 2017
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 ("RIS"), this inside information is now considered to be in
the public domain.
Cluff Natural Resources Plc / Index: AIM / Epic: CLNR / Sector:
Natural Resources
31 May 2017
Cluff Natural Resources Plc ('CLNR' or 'the Company')
Operations Update - Licence P2248
CLNR, the natural resources investing company with gas assets in
the Southern North Sea, is pleased to provide an operational update
on its 100% owned asset P2248, located in the Southern North
Sea.
Highlights
-- Further analysis of seismic data has further de-risked the
Bunter Sandstone Prospects potentially unlocking a new regional
Bunter Sandstone play with significant resource potential at low
cost
-- Key risk of the Cadence Prospect has been further addressed
with revised fault interpretation resulting in a significantly more
robust structure with two potentially independent, lower risk
compartments within the larger Cadence prospect now clearly
identified
-- Farm-out process for P2248 on-going with encouraging level of
traffic through the dataroom with targeted closing of the dataroom
during the summer
Commenting CNR's Chairman and Chief Executive Algy Cluff
said:
"The on-going technical work continues to enhance the prospects
identified by the Company and directly feeds into the on-going
farm-out process. The interest in the dataroom to date has been
very encouraging, especially in the context of other regional
activities which include a deep Carboniferous exploration well
currently being drilled by BP to the south of our licences, the
results of which we, and the industry as a whole, are eagerly
anticipating. These regional activities could have a significant
positive impact on the farm-out process and we continue to monitor
their progress carefully."
Further Information
P2248 Bunter Sandstone Prospects
As previously announced, CLNR's assessment of the 3D seismic
data identified three large Bunter Sandstone prospects with
combined P50 Prospective Resources in excess of 800 BCF, as
confirmed in the Competent Persons Report ('CPR') published in
October 2016.
Further analysis of the seismic data, including a pre-stack
inversion, has confirmed that each prospect has an associated
direct hydrocarbon indicator ('DHI') in the form of an amplitude
versus offset ('AVO') response which are analogous to the adjacent
Bunter Sandstone fields, including Esmond (which produced 313 BCF
between 1985 and 1996) and the Furasta discovery (tested at 19.6
mmscf/day), and are clearly distinct from the Class I AVO anomalies
associated with the failed Bunter exploration wells that have been
drilled historically by third parties.
The Board believes that these positive AVO responses further
de-risk the three Bunter Sandstone prospects located on CLNR's
licence and potentially unlocks a new regional Bunter Sandstone
play with significant resource potential accessible at low cost
given the shallow water environment and high quality reservoir.
P2248 Cadence Carboniferous Prospect
The key risk associated with the 929 BCF (P50 Prospective
Resources) Cadence Carboniferous prospect, as identified in the
Company's CPR, was the sealing potential of the main bounding
fault. To further address this risk a further detailed structural
interpretation focusing on the bounding fault and its sealing
potential has now been completed, with the revised fault
interpretation resulting in a significantly more robust structure
and two potentially independent, lower risk compartments within the
larger Cadence prospect have now been clearly identified. The
results are particularly encouraging at the Scremerston Formation
level where fault seal analysis has confirmed the potential for
hydrocarbon column heights in the Scremerston Formation of several
hundred metres.
Farm-out Process
The farm-out process in respect of P2248 and P2252 is currently
on-going and the Company has been encouraged by the level of
traffic through the dataroom. The fault seal analysis will be
circulated, along with the results of the AVO analysis, to the
dataroom participants with the aim of closing the dataroom during
the summer.
The Company will update the market on progress as
appropriate.
Qualified Person's Statement:
Andrew Nunn, CLNR's Chief Operating Officer, has approved the
information contained in this announcement. Mr Nunn is a Chartered
Geologist who meets the criteria of a qualified person under the
AIM Guidance Note for Mining, Oil and Gas Companies.
Glossary of Technical Terms
Amplitude versus In geophysics and reflection
offset: seismology, amplitude versus
offset (AVO) or amplitude variation
with offset is the general term
for referring to the dependency
of the seismic attribute, amplitude,
with the distance between the
source and receiver (the offset).
AVO analysis is a technique that
geophysicists can execute on
seismic data to determine a rock's
fluid content, porosity, density
or seismic velocity, shear wave
information and fluid indicators
(including hydrocarbon indications).
BCF: Billion Cubic Feet.
P50 resource: reflects a volume estimate that,
assuming the accumulation is
developed, there is a 50% probability
that the quantities actually
recovered will equal or exceed
the estimate. This is therefore
a median or best case estimate
of resource.
Prospective Resources: Are estimated volumes associated
with undiscovered accumulations.
These represent quantities of
petroleum which are estimated,
as of a given date, to be potentially
recoverable from oil and gas
deposits identified on the basis
of indirect evidence but which
have not yet been drilled.
mmscf/day: million standard cubic feet per
day.
TCF: Trillion Cubic Feet.
**ENDS**
For further information please visit
www.cluffnaturalresources.com or contact the following:
Cluff Natural Resources Tel: +44 (0) 20 7887
Plc 2630
Algy Cluff/ Graham Swindells/Andrew
Nunn
Allenby Capital Limited (Nominated Tel: +44 (0)
Adviser & Broker) 20 3328 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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