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OGA waives farm-out requirement for Cluff
Natural resources investing company Cluff Natural Resources announced on Thursday that the UK Oil and Gas Authority has waived its requirement for a farm-out to have been concluded by 31 May on the company's two 100%-owned Southern North Sea gas licences, P2248 and P2252.
The AIM-traded firm said that as a result, both the promote period and the initial term of each licence would continue to run until 30 November, subject to a drill or drop decision being made by 30 September.
It said that would allow it to continue the farm-out process in respect of P2248 and P2252, while also exploring various additional forms of financing which would support its ultimate aim of drilling one or more wells on these licences.
"We are very pleased that the OGA has granted our request to continue both of our high impact licences in the Southern North Sea gas basin, an area in which we continue to see significant value," said Cluff chief executive Graham Swindells.
"With the OGA's support, we are able to continue the process of securing partners and funding to drill one or more wells in 2019.
"With the addition of blocks awarded to the company in our successful application for licences in the 30th UK Offshore Licensing Round, which has taken the estimated P50 prospective resource base in the company's portfolio to 4.3 TCF of gas, we believe the company is in a strong position for growth."