Cluff Natural Resources has abandoned its plans to buy a pair of North Sea licenses from Verus Petroleum.
To remind, on May 10, 2016, the company said it had entered into an option with Verus Petroleum to acquire a 25% interest in licenses P1944 (Block 14/20e) and P2156 (Block 15/11 & 16f) located in the Outer Moray Firth which contain the Fynn and Penny prospects which was exercisable within a period of nine months.
The agreement also included the acquisition of a 25% participating interest in license P2082. However, Verus had to relinquish the license as the license’s initial term was not planned for extension beyond December 31, 2016. The Oil and Gas Authority (OGA) said the license would be available for reapplication in the 30th Licensing Round in 2017.
As a result, in October 2016, Cluff decided not to exercise its option over license P2082 while the option over licenses P2156 and P1944 remained in place.
In a new development of events, Cluff revealed on Monday, February 13 that as uncertainty exists as to the likely timing of any drilling activity on this license, the company has not exercised the option and an extension to the option has not been entered into. Accordingly, the option for licenses P2156 and P1944 has lapsed.
The company added continues to focus its efforts on further developing its portfolio of assets, in particular its two 100% owned licenses (P2252 & 2258) in the Southern North Sea.
The company said in January it was working on attracting industry partners in order to ultimately fund the drilling of one or more wells on its two production licenses in the Southern North Sea.
Commenting, CLNR’s Chairman and Chief Executive Algy Cluff said: “Our primary focus continues to be the farm out of our highly prospective licences in the Southern North Sea Gas basin. Whilst this process is still at a relatively early stage, it has got off to a very encouraging start and since opening the data room the prospects have attracted a significant level of interest from established North Sea operators.”