27 June, 2018 – Cluff Natural Resources Plc, the AIM quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern North Sea gas basin, is pleased to announce a placing (the “Placing“) and subscription (the “Subscription“) (together the “Placing and Subscription“) of a total of 95,238,090 new ordinary shares to raise a total of £2 million (before expenses). All new ordinary shares are to be issued at a price of 2.1 pence per new ordinary share (the “Placing and Subscription Price“).
Use of proceeds
Following the highly successful outcome from the Company’s applications in the UK’s 30th Offshore Licensing Round, culminating in the provisional award of 10 blocks in the Southern and Central North Sea, containing both oil and gas prospects, the Company has decided to raise additional funds to accelerate the evaluation and development of the Company’s enlarged portfolio of assets.
In addition to providing general working capital, the proceeds of the Placing and Subscription will be principally used to:
• accelerate the technical and commercial evaluation of the additional Central and Southern North Sea oil and gas licences awarded in the 30th Offshore Licensing Round and determine future drilling opportunities;
• continue the process of seeking to secure farm-in partner(s) and/or strategic investors to fund drilling on the Company’s existing licences P2248 and P2252; and
• continue planning for a prospective multi-well drilling programme in 2019 on key exploration targets on existing licences P2248 and P2252.
The Directors expect that the net proceeds of the Placing and Subscription will fund the Company for a minimum of 12 months.
CNR’s Chairman, Algy Cluff, commented:
“Our outstanding result in the 30th Licensing Round exceeded even our own expectations. The awards build on the Company’s core competencies focussed primarily on the Southern North Sea but also include blocks in the Central North Sea which contain oil prospects, further enhancing and diversifying our portfolio. Due to the significant expansion of the size and nature of the Company’s portfolio of prospects, the Board now has the opportunity to accelerate investment in the technical and commercial evaluation of both oil and gas prospects to create a significant pipeline of future drilling opportunities, while continuing its current process of securing partners for its existing licences to implement its planned drilling programme in 2019.”
Full announcement at https://www.cluffnaturalresources.com