Cluff close to North Sea farm-in deal

Offshore staff

LONDONCluff Natural Resources has signed heads of terms with Verus Petroleum (CNS) and Verus Petroleum (SNS), both subsidiaries of Verus Petroleum UK.

Under the arrangement, Cluff would acquire interest of 5-20% from Verus in three licenses in the UK central North Sea and the Moray Firth.

Parkmead Group operates two of the licenses which could potentially hold 400 MMbbl of recoverable oil.

The licenses are P1944 (block 14/20e) and P2156 (blocks 15/11 and 15/16f) in the Outer Moray Firth contain the Fynn and Penny exploration prospects. These are located below shallow Tertiary sands where previous proved heavy oil.

License P2082 (blocks 30/12c, 13c, 17e, and 18c) in the central North Sea contains the Skerryvore exploration prospect.

Cluff says Skerryvore and Fynn are effectively drill ready and a well on each prospect will likely be drilled within the next 12-24 months to take advantage of currently reduced drilling costs.

The consideration for the proposed acquisition and for the option agreements shall be £1 ($1.43) each with the economic date being Jan. 1, 2016.

Cluff chairman and CEO Algy Cluff said: “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.”

03/28/2016

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