Cluff seeking farm-out partners for southern North Sea prospects

2016 a challenging year but boss says outlook has improved

Cluff Natural Resources is searching for farm-out partners for its prospects in the southern North Sea.

Chief executive Algy Cluff said 2016 had been another challenging year for the natural resources sector but he believed the outlook has greatly improved.

“We have made significant progress in 2016 on a number of fronts, not least the near trebling of our estimated prospective resource base,” he stated.

The company published its revised Competent Persons Report demonstrating the potential of its Licence P2248 in the southern North Sea, and secured funding for the coming year.

“We anticipate expanding our portfolio in 2017 and are confident that our enhanced understanding of our existing licences will facilitate the process of attracting farm-out partners with the ultimate aim of drilling one or more wells on these highly prospective assets,” he added.

Last year Cluff focused solely on its 100% owned licences P2252 and P2248 in the southern North Sea, with an estimated combined total of more than 400 million barrels of oil.

The firm’s unaudited cash position on December 31 was £1.7 million.

Mr Cluff considers Scotland has lost the chance to be a “world leader” in Underground Coal Gasification (UCG).

The Scottish Goverment banned the process on environmental grounds last year after an independent review.

Cluff had planned to spend more than £250m building the UK’s first deep offshore UCG plant at Kincardine in Fife, and argued the risks could have been managed with appropriate regulations.

We anticipate expanding our portfolio in 2017. ALGY CLUFF

Algy Cluff believes his firm’s knowledge will help to attract partners to start drilling in the southern North Sea.