Cluff Natural Resources (CLNR) has signed heads of terms with Verus Petroleum UK for 25% participating interest in three licenses located in the Central North Sea and the Moray Firth.
These licenses, two of which are effectively drill ready, are operated by The Parkmead Group, which estimates the potential for 400 MMbbl of recoverable oil in aggregate.
CLNR proposes initially to acquire a 5% non-operated interest in UK Continental Shelf (UKCS) Licenses 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 heads of terms provide for an exclusive option, which allows CLNR to increase its equity position in Licenses 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. Additionally, it provides for an exclusive option to acquire, within the same nine month period, a 25% interest in Licence P2082 (Blocks 30/12c, 13c, 17e, and 18c) which is located in the Central North Sea and contains the Skerryvore exploration prospect.
The consideration for the proposed acquisition and for the option agreements is US$1.41 (£1) each with the economic date being 1 January 2016.
“We are delighted to have been able to take advantage of the current circumstances in the North Sea which have seen a number of very high quality exploration and appraisal assets become available at low or even no cost,” said Algy Cluff, CLNR’s chairman and chief executive. “These proposed acquisitions complement our existing five licenses in the Southern North Sea which demonstrated significant gas potential and represent the first steps to creating a diversified portfolio of exploration and appraisal assets. Our objective now is to complete the acquisition process and begin working with our new partners to fully appraise the significant production potential of these exciting assets.”
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