Cluff Natural Resources buys three North Sea oil licenses for 1 poundStaff 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.
Oil exploration 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. ■