20th Jul 2015 08:33
LONDON (Alliance News) - Cluff Natural Resources PLC Monday said it has made "significant progress" under its partnership deal with oil field service giant Halliburton AS in developing the company's North Sea assets.
Cluff Natural Resources is pioneering underground coal gasification (UCG), a technique which converts coal into gas, targeting coal that cannot be mined because the seams are too deep, thin or fractured and involves using the same sort of drilling technology usually used for fracking.
The company has five conventional licenses covering 11 blocks in the gas province in the Southern North Sea which it secured in late 2014, and nine licenses for underground coal gasification that covers five coal basins in Scotland, Wales and England.
Cluff and Halliburton's subsidiary, Halliburton Manufacturing and Services Ltd, signed a memorandum of understanding back in February aiming to develop both Cluff's gas and UCG assets in the UK.
On Monday, the company said: "Significant progress has been made in the context of accelerating the development of both the company's Southern North Sea gas and underground coal gasification assets in the UK."
Cluff said Halliburton is currently working with the company to develop a plan which would allow "one or more wells" to be drilled on its gas assets in the Southern North Sea, and it is providing technical and geological assistance to develop its flagship Kincardine UCG project in Scotland.
The technical assistance provided by Halliburton will lead to Cluff submitting a planning application for the Kincardine project, it said.
"We are excited about the prospect of continuing to develop our strategic relationship with Halliburton with a view to accelerating the development and commercialisation of our assets and look forward to providing further updates in due course," said Chief Executive and Chairman Algy Cluff.
Cluff shares were trading flat on Monday morning at 3.25 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
CLNR.L