Business
Acquisition of North Sea Licences
Acquisition of North Sea Licences.
About this update from Deltic Energy Plc
[{"type":"text","content":"\n \nRNS Number : 7004X Cluff Natural Resources plc 10 May 2016 \n\nCluff Natural Resources Plc / Index: AIM / Epic: CLNR / Sector: Natural Resources\n \n10 May 2016\n \nCluff Natural Resources Plc ('CLNR' or 'the Company')\nAcquisition of North Sea Licences\n \nCluff Natural Resources, the natural resources investing company with gas assets in the Southern North Sea, is pleased to announce that, further to the announcement on 23 March 2016, it has signed a sale and purchase agreement (\"SPA\") and exclusive option agreement (\"Option\") with Verus Petroleum (CNS) Ltd and Verus Petroleum (SNS) Ltd (\"Verus\") in relation to the acquisition of Verus's equity stake in three traditional oil and gas licences located in the Central North Sea and the Moray Firth. These licences, two of which are effectively drill ready, are operated by The Parkmead Group (AIM:PMG).\n \nKey Highlights\n· Under the SPA the Company has agreed to acquire, subject to customary regulatory approvals, a 5% non-operated interest in UKCS licences P1944 (Block 14/20e) and P2156 (Block 15/11 & 16f) located in the Outer Moray Firth which contain the Fynn and Penny prospects located below a significant volume of previously discovered heavy oil. \n \n· Under the Option, CLNR has been granted two exclusive options both of which are exercisable within a period of nine months following execution of the SPA. These options allow the Company to:\no increase its equity position in Licences P1944 and P2156 to 25%; and\no acquire a 25% interest in Licence P2082 (Blocks 30/12c, 13c, 17e & 18c) which is located in the Central North Sea and contains the Skerryvore exploration prospect.\n \n· Based on significant subsurface work completed to date, it is estimated by the operator that the licences could contain approximately 400 million barrels of potentially recoverable oil (11 mmboe net to CLNR following completion of SPA and 100 mmboe net to CNLR in the event of exercise of the Options). \n \n· The Fynn and Skerryvore prospects are effectively drill ready and it is expected that a well on each prospect would be drilled within the next 24 months in order to take advantage of the lower cost operating environment which currently prevails in th...