Cluff looking for partners to fund wells in Southern North Sea
Cluff Natural Resources, an AIM quoted company investing in natural resources, is looking for farm-out partners to fund the drilling of wells at its Southern North Sea licenses.
Early in 2016, the company took the decision to concentrate its investment on its two most prospective assets, 100% owned licenses P2252 and P2248, and was granted a one-year extension until November 2017, while relinquishing its other less prospective licenses.
In October 2016, Cluff confirmed a ‘substantial’ increase in the prospective resources for its License P2248. In December, the company reported a ‘significant increase’ in P50 Prospective Resources on the License P2252. As a result of this work, Cluss 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 said on Monday it is now focussed on attracting industry partners in order to ultimately fund the drilling of one or more wells on its two production licenses in the Southern North Sea.
The farm-out process has now formally started 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, Cluff stated.
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 licenses.
A further application has been made for a license in the UK’s 29th Licensing Round and the company plans to participate in the 30th Licensing Round which is expected to be opened in 1H 2017. The company stated it 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.
Commenting, CLNR’s Chairman and Chief Executive Algy Cluff said: “We anticipate expanding our portfolio in 2017 and are confident that our enhanced understanding of our existing licenses will facilitate the process of attracting farm-out partners with the ultimate aim of drilling one or more wells on these highly prospective assets.”