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Cluff Natural Resources buys three North Sea oil licenses for 1 pound

Staff writer ▼ | March 23, 2016
Cluff Natural Resources signed an agreement to pay £1 to acquire three North Sea licences with the company said offered the potential for 400m barrels of recoverable oil in the near-term.
Cluff Natural Resources
Oil exploration   In the Central North Sea and the Moray Firth
Cluff has signed a heads of terms agreement with Verus Petroleum UK over the proposed acquisition of up to a 25% stake in Verus's three licences located in the Central North Sea and the Moray Firth.

Two of the licences are "effectively drill ready", the company said.

All three areas are operated by AIM-listed Parkmead Group, which has estimated the potential for 400m barrels of recoverable oil in aggregate.

Cluff initially plans to buy a 5% non-operated interest in 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.

The AIM-listed company will, under the heads of terms, then be able to follow up with an exclusive option 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.

Cluff expects that a well on the Skerryvore and Fynn prospects will be drilled "within the next 12 to 24 months" to take advantage of the North Sea's current lower cost operating environment.