Cluff Natural Resources has received all the regulatory approvals required to complete the cross assignment of equity positions in two contiguous licence areas in the Southern North Sea with Simwell Resources and Burgate E&P, which the company announced on 9 June.
The equity position across both licences is now 50% CLNR, 45% Simwell & 5% Burgate. Burgate will act as licence administrator on both licences. The company has also announced a resource update on these licences ahead of the publication of a competent person's report on its Licence P2248, which is now expected to be around mid-October 2016.
Chairman and chief executive Algy Cluff said: "We are pleased to announce the positive outcome of the initial work carried out by our partners on these Southern North Sea licences. The conclusions support the further appraisal and potential development of what could be a significant new gas field with potential combined net P50 resources of 303 BCF and we look forward to working with Simwell and Burgate to further progress the technical evaluation of these assets."
- Cross assignment of equity positions completed in the 28th Round Promote Licences P2253 (Block 42/14b, 100% CLNR) and P2258 (Block 42/15b, 90% Simwell, 10% Burgate) located in the Southern North Sea gas basin.
- Prospective Resources associated with those leads on P2253 and P2258 have been provided by Simwell Resources, and reviewed by the Company, with gross GIIP estimated to be in the range of 576BCF to 2,602 BCF and combined P50 net Prospective Resources of 303 BCF of gas for Lead Z, C North and Hz-80 Fault Abutment.
- A significant structural closure within the Carboniferous had been previously identified straddling the boundary of the two licence areas. Technical work completed by Simwell since the cross-assignment agreement in June 2016 has refined the interpretation of this structure and identified further leads in the Carboniferous and Zechstein which has significantly increased the prospectivity of the acreage.
- P2258 also contains a small discovery (Furasta - Well 42/15-1) in the Bunter Sandstone which flowed at a rate of 19.6mmscfd on test. The Furasta discovery has a mid-case GIIP of 23.5 BCF and P50 Contingent Resources of 17.6 BCF (8.8 BCF net to CLNR) based on estimates published by historical holders of the licence.
- Licence work commitments associated with both blocks have been completed and future technical work will focus on de-risking the prospect further with the aim of securing a favourable farm-out arrangement which would allow the larger Carboniferous prospect to be fully appraised.
At 9:24am: (LON:CLNR) Cluff Natural Resources PLC share price was -0.38p at 4.95p