16th Jan 2017 09:45
LONDON (Alliance News) - Cluff Natural Resources PLC on Monday said its key focus for 2017 will be on farming-out one or more of its key prospects whilst keeping its eye out for further investment opportunities.
The UK-focused natural resources sector investor said it has made good progress in advancing its gas projects in the southern part of the UK's North Sea, with its focus sharpened to its P2252 and P2248 licences.
Now, the group will seek to identify farm-out partners in order to fund drilling on or more wells on the two production licences.
The farm-out process has been formally started and Cluff said it has seen an "encouraging" response thus far from potential partners.
Beyond looking to secure farm-out partners, Cluff said it will also spend 2017 looking to expand its asset base.
"While 2016 was another challenging year for the natural resources sector as a whole, we believe that the outlook has greatly improved both for the sector and the company," said Algy Cluff, the firm's chairman and chief executive.
"We anticipate expanding our portfolio in 2017 and are confident that our enhanced understanding of our existing licences will facilitate the process of attracting farm-out partners with the ultimate aim of drilling one or more wells on these highly prospective assets," he added.
Cluff shares were up 2.5% to 3.10 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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