LONDON – Cluff Natural Resources has completed the cross assignment of equity positions in two contiguous license areas in the UK southern North Sea with Simwell Resources and Burgate E&P.
The parties decided to combine their equity positions following the identification of a large Carboniferous gas prospect that overlaps the two licenses.
Both are promote licenses awarded under the UK’s 28th offshore round: P2253 (block 42/14b) and P2258 (block 42/15b).
Assuming regulatory approvals, the equity position in both licenses will be Cluff 50%, Simwell 45%, and Burgate 5%.
Burgate will be the administrator of both concessions throughout the promote period.
The structural closure within the Carboniferous across the two license areas is around 36 sq km (22 sq mi), with potential in-place gas in the range of 239-619 bcf.
Technical work to refine in-place and recoverable volumes should be completed over the next few months.
P2258 also contains a small discovery (well 42/15-1) in the Bunter Sandstone which flowed 19.6 MMcf/d on test, with a mid-case gas-in-place of 23.5 bcf and P50 resources of 17.6 bcf.
As it overlies the deeper Carboniferous structure, a joint development is theoretically possible.
The partners aim to secure a farm-out arrangement in order to fully appraise the larger prospect.
Cluff chairman and CEO Algy Cluff said: “This zero cost strategic agreement increases CLNR’s footprint in the southern North Sea and enables the effective appraisal and potential development of what could be a significant new gas field.”
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