Cluff Wins UK Farm-Out Reprieve
AIM-listed Cluff Natural Resources says the UK upstream regulator Oil & Gas Authority (OGA) has waived its requirement for a farm-out to have been concluded by May 31 on its two UK southern North Sea gas licences, P2248 and P2252.
Each licence will therefore continue to run until November 30, subject to a drill or drop decision being made by September 30, allowing Cluff more time to continue its farm-out process.
CEO Graham Swindells said: “We are very pleased that the OGA has granted our request to continue both of our high impact licences in the Southern North Sea gas basin, an area in which we continue to see significant value. With the OGA’s support, we are able to continue the process of securing partners and funding to drill one or more wells in 2019." OGA took a similar decision six months ago.
With the ten new licences or part-licences awarded to it in the UK's 30th offshore licensing round last week, Cluff estimates its total P50 prospective resource base now at 4.3 trillion ft3 gas.