Cluff Natural Resources Plc, the AIM-quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, is pleased to announce its audited results for the year ended 31 December 2019 (‘FY 2019’).
Highlights
- Farm-out of Licence P2252, containing the Pensacola Prospect, to Shell UK Ltd (“Shell”) completed in May 2019. Farm-out includes a full carry through new 3D seismic acquisition and a contingent well commitment.
- Acquisition of 3D seismic on Pensacola successfully completed in August 2019, with processing of the data ongoing.
- Farm-out of Licence P2437, containing the Selene Prospect, to Shell for initial consideration of US$600,000 completed in August 2019, with a carry of 75% of the costs of the first well, up to US$25 million.
- Continuing to work with Shell towards firm well commitments on both Pensacola and Selene.
- Transformational equity fundraise of £15.0 million (gross) in July 2019, fully funding the Company to the end of 2021, including its share of the Pensacola and Selene wells.
- Farm-out process on Dewar oil prospect ongoing.
- Technical work continuing on Licence P2428 (Cupertino), P2424 (Cortez) and P2435 (Blackadder) in advance of prospective farm-outs.
- Multiple applications submitted for additional licences in the UK Oil & Gas Authority’s latest Offshore Licensing Round, with awards expected in summer 2020. Success will further expand, enhance and diversify the existing portfolio, without adding any near-term cost liabilities.
- Net cash outflow from operations and investing activity for the year of £1.8 million (2018: £2.2 million).
- Cash position of £13.8 million at 31 December 2019 (2018: £1.42 million) with no debt. As at 31 March 2020, the Company had cash on hand (unaudited) of £13.2 million.
- Mitigated the immediate impacts of COVID-19 situation on our ongoing work programmes with all staff able to work effectively from home for an extended period.
Graham Swindells, Chief Executive Officer:
“2019 was a transformational year for our Company, agreeing two farm-outs with Shell over our Pensacola and Selene Prospects in the Southern North Sea as well as securing financing to ensure we are fully funded for our current requirements, including the drilling of wells on both prospects.”
“Despite the effects of Covid-19 and commodity price volatility, given the Company’s low overheads, no debt, and its attractive portfolio of prospects, we remain in a strong position from which to deliver exceptional growth.”
“We have a number of key drivers of value as we continue to work with Shell towards firm well commitments on both Selene and Pensacola, the ongoing farm-out of Dewar, the progression of our other gas licences and the potential award of additional licences in the latest UK licensing round. Achievement of each of these would be a major driver of value and we look forward to updating shareholders in due course.”
