UK’s Oil & Gas Authority (OGA) has confirmed the extension of two Southern North Sea gas licenses owned by Cluff Natural Resources.
Cluff said on Monday that the 100 percent owned P2248 and P2252 licenses, estimated to contain combined net P50 prospective resources of 2.4 trillion cubic feet of gas, would be extended for another year, subject to certain milestones.
According to the company, both the promote period and the initial term of each license will run until November 30, 2018, subject to a farm-out being achieved by May 31, 2018, and a drill or drop decision being made by September 30 of the same year.
Cluff added that the technical milestones that must be achieved under the extension of the licenses were in accordance with the company’s planned work program.
“The company has received interest from a number of parties viewing the data room for the farm-out process in respect of P2248 and P2252, and CLNR remains in dialogue with those companies who have shown interest in the portfolio to date,” the company said.
Cluff chairman and chief executive, Algy Cluff, said: “We are very pleased that the OGA has granted our request to extend both of our licenses. This ensures that we will be able to continue our farm-out negotiations from a stronger position, which increases the probability of the drilling of one or more wells on our licenses.
“In the meantime, we have submitted our applications for further licenses in the current UK Offshore Licensing Round which are due to be announced in Q2 2018, as well as continuing to assess additional investment opportunities. Our immediate priority, however, remains the creation of value for shareholders by securing the investment required to drill our two highly prospective P2248 and 2252 licenses, and we are in discussions with potential farm-in partners in this regard.”