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, notes recent share price volatility and confirms that, irrespective of market uncertainty related to commodity price weakness and Covid-19, the Company's operations and planned work programmes remain on-track and day-to-day operations are unaffected.
The Company is in a position of relative strength in these uncertain times. It has no direct exposure to oil prices, has no debt and is well capitalised following a fundraising in June 2019. As at 29 February 2020, the Company had £13.3 million of cash (unaudited). The Company remains funded for its share of the Selene and Pensacola wells and, on current plans, for its working capital requirements through to the end of 2021.
The Company continues to focus on its portfolio of natural gas exploration assets in the UK and is continuing to work closely with its joint venture partner, Shell UK Limited ("Shell"), towards a number of key potential value catalysts during this year, including well investment decisions on the Selene and Pensacola natural gas prospects in the Southern North Sea.
While the Dewar farm-out process remains active, the Company anticipates that the current commodity market volatility may impact on the deliverability of this farm-out within the timelines previously communicated. The Company will review the status of the farm-out process once the impacts of the Covid-19 outbreak are better understood and some relative stability has returned to commodity prices and the wider market.
UK Oil and Gas Authority (" OGA") guidance regarding the award of 32nd UK Offshore Licensing Round remains unchanged and the Company still anticipates licence awards being made in Q2 of this year. Success in this licensing round will further expand, enhance and diversify the Company's existing portfolio of prospects.
Graham Swindells, Chief Executive Officer of Cluff Natural Resources Plc commented:
"Cluff remains in a strong position from which to deliver exceptional growth. We remain fully financed for drilling activity and have multiple upcoming catalysts for growth from our existing and potentially expanding portfolio via the UK Offshore Licensing Round."
"Good progress is being made on our Pensacola and Selene licences with Shell as we continue to work towards well investment decisions on both licences. We look forward to updating shareholders on Selene, Pensacola, the farm out process of our Dewar prospect and new licence awards, in due course."