TIDMCLNR
RNS Number : 6873I
Cluff Natural Resources plc
28 November 2018
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.
28 November 2018
Cluff Natural Resources Plc / Index: AIM / Epic: CLNR / Sector:
Natural Resources
Cluff Natural Resources Plc ('CLNR' or 'the Company')
Exclusivity Agreement & 28(th) Round Licence Extensions
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 the signing of an exclusivity agreement with a major
international oil and gas company and provides an update on the
status of its two 100% owned Southern North Sea Gas licences P2252
and P2248, which were awarded in the UK's 28(th) Licensing
Round.
Highlights
-- Six-month Initial Term licence extensions granted for both
P2252 and P2248 licences to 31 May 2019
-- Exclusivity Agreement signed with major international oil and
gas company for Licence P2252
-- Licence P2252 extended subject to the Company committing to a
seismic and well work programme by 28 February 2019
-- Licence P2248 extended subject to the Company being in a
position to make a firm well commitment by 28 February 2019
-- Advanced negotiations ongoing on Licence P2248 with the
Company's preferred bidder, on a non-exclusive basis
Exclusivity Agreement
Following discussions with multiple data room entrants, the
Company has signed an exclusivity agreement (the "Agreement") on
Licence P2252 with a major international oil and gas company (the
"Counterparty"). Exclusivity has been granted to the Counterparty
subject to a definitive farm out agreement being entered by 31
January 2019 and completion by 28 February 2019.
Given the exclusivity arrangement, discussions and negotiations
with other potential partners on the P2252 licence have been ended
and the P2252 data room closed while the Agreement is in place.
Despite entry into the Agreement, no assurance can be provided
that a commercial transaction will ultimately be concluded with the
Counterparty. The Company will provide further updates in due
course.
28(th) Round Licence Extensions
Following a request for an extension to the Initial Term of both
the P2252 and P2248 licences, the UK Oil and Gas Authority ("OGA")
has confirmed that it will allow the Initial Term of both licences,
in which the Company currently owns a 100 per cent. interest, to
extend for a period of six months until 31 May 2019, subject to
further work programme commitments being made.
These commitments are that, for P2252, by 28 February 2019 the
Company commits to a seismic and well work programme on the
Pensacola Prospect, and, for P2248, the Company makes a firm well
commitment by 28 February 2019.
In respect of P2248, the Company is currently in advanced
negotiations with its preferred bidder, on a non-exclusive basis.
The licence extension allows the Company the opportunity to
complete a transaction which could lead to the drilling of one or
more wells on the licence.
While seeking to complete the farm out process on Licences P2248
and P2252, the Company is also progressing the additional six
highly prospective licences recently awarded to it in the UK's
30(th) Offshore Licensing Round, which added an estimated 1.9 TCF
of prospective resources to the portfolio.
Commenting CLNR's Chief Executive Graham Swindells said:
"We are delighted to have selected a highly regarded
international oil and gas major as our preferred partner for P2252,
which contains the Pensacola Prospect. This represents a major step
forward for the licence and reflects the significant amount of work
the team has done to de-risk it. We look forward to working closely
with the Counterparty and updating the market in due course."
"The board and I are also very pleased that the Initial Term of
both of these highly prospective licences is to be extended. With
the OGA's support, we are now able to continue discussions to
secure partners in an oil and gas sector with an improved appetite
for high impact exploration and an increasingly positive outlook
for the North Sea."
"Our immediate focus will now be to complete negotiations with
the parties with whom we are in discussion and progress towards
agreeing farm outs whilst, in tandem, continuing to evaluate the
highly prospective licences awarded to us in the 30(th) Offshore
Licensing Round."
**ENDS**
For further information please contact the following:
Cluff Natural Resources Plc Tel: +44 (0) 20 7887
2630
Algy Cluff / Graham Swindells / Andrew Nunn
Allenby Capital Limited (Nominated Adviser Tel: +44 (0) 20 3328
& Broker) 5656
David Hart / Alex Brearley / Asha Chotai
(Corporate Finance)
Camarco Ltd Tel: +44 (0) 20 3781
8334
Owen Roberts / James Crothers / Emily Hall
(Financial PR)
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.
On 23 May 2018, the Company was provisionally awarded an
additional 6 licences 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 1.9 TCF of P50 prospective resources.
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.
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.
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END
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