Cluff raises funds to develop UK UCG

Cluff Natural Resources has raised £2.2mn to develop UK underground coal gasification (UCG) and southern North Sea gas licences. CLNR has five North Sea ‘Promote’ licences for conventional gas exploration which were awarded to the company in December 2014. The licences are located in close proximity to a number of recent discoveries (eg the Breagh field) which have been identified and unlocked by new broadband 3D seismic and advances in drilling and completion technology. The licences are also in shallow water close to established infrastructure and gas markets. In order to unlock value in this proven gas basin, the company anticipates utilising approximately £400,000 from a recent placing aimed at raising £2.2mn to acquire and process seismic data to fully define prospects over these licence areas. The primary focus will be licence P2252 which contains the undeveloped Lytham discovery in block 42/1 (CLNR 100% interest). Following this, CLNR will seek to secure suitable farm-in partner(s) ahead of a drill-or-drop decision by the end of 2016.