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, has recently updated the UK Oil and Gas Authority (“OGA”) on its farm out processes for the P2248 and P2252 licences. As a result, the OGA is not proposing to enforce the previously stated milestone whereby a drill or drop decision was needed to be made by 30 September 2018.

Accordingly, both the Promote Period and the Initial Term of both licences will continue to run until 30 November 2018. This will allow the Company to continue the ongoing farm out process and continue to explore various additional forms of financing which will support its aim of drilling one or more wells on these licences.

In recent weeks the Company has experienced a significant increase in the level of interest in the Company’s licences and has welcomed a number of new parties, including established North Sea operators, into its data room. While providing these new entrants sufficient time to evaluate the opportunities available, the Company is continuing discussions with several parties who have previously indicated an interest in the assets. Whilst there can be no guarantee that any of these discussions will have a positive conclusion, the Company remains confident of being able to secure a successful outcome from the farm out process and looks forward to providing a further update in due course.

Commenting CLNR's Chief Executive Graham Swindells said:
“In a period of rising oil and gas prices, the industry has experienced a rapid shift in focus from cash preservation and production maintenance towards investing in exploration and reserves replacement activity. This shift in momentum towards investing in North Sea exploration is having a positive impact on our farm-out process and we remain confident of being able to achieve our ultimate aim of securing the necessary partners and investment to allow wells to be drilled on these two licences.”

“We have also commenced our work program in relation to the six new licences awarded to the Company in the 30th UK Offshore Licensing Round with preliminary estimates increasing estimated P50 prospective resource within the Company’s portfolio to 4.3 TCF of gas. We are excited about the potential associated with these new licences but remain focussed on our immediate aim of concluding a successful farm out of licences P2248 and P2252.”