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Heads of Terms for North Sea Licences Acquisition
Heads of Terms for North Sea Licences Acquisition.
About this update from Deltic Energy Plc
[{"type":"text","content":"\n \nRNS Number : 9595S Cluff Natural Resources plc 23 March 2016 \n\nCluff Natural Resources Plc / Index: AIM / Epic: CLNR / Sector: Natural Resources\n23 March 2016\nCluff Natural Resources Plc ('CLNR' or 'the Company')\nSigned Heads of Terms for Proposed Acquisition of North Sea Licences\n \nCLNR, the natural resources investing company with gas assets in the Southern North Sea, is pleased to announce that it has signed Heads of Terms with Verus Petroleum (CNS) Limited and Verus Petroleum (SNS) Limited (both wholly-owned subsidiaries of Verus Petroleum UK Limited) ('Verus') in relation to the proposed acquisition of up to a 25% participating interest held by Verus in three 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, which estimates the potential for 400 million barrels of recoverable oil in aggregate.\n \nKey Highlights\n· The Company proposes initially to acquire a 5% non-operated interest in UK Continental Shelf ('UKCS') Licences P1944 (Block 14/20e) and P2156 (Block 15/11 & 15/16f) located in the Outer Moray Firth, which contain the \"Fynn\" and \"Penny\" exploration prospects located below the shallow Tertiary sands that were found to contain heavy oil \n \n· The Heads of Terms provide for an exclusive option which allows CLNR to increase its equity position in Licences P1944 and P2156 by 20% to 25% within a period of nine months following execution of the sale and purchase agreement for the acquisition of the initial 5% interest ('SPA') \n \n· The Heads of Terms additionally provide for an exclusive option to acquire, within the same nine month period, 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· All three licences are operated by The Parkmead Group (AIM: PMG) and, based on significant subsurface work completed to date, the operator's preliminary estimate for the licences is approximately 400 million barrels of potentially recoverable oil in aggregate (or approximately 100mmboe net to CLNR post exercise of the options)\n \n· The Skerryvore and Fynn prospe...