Cluff Natural Resources leaps on new exclusivity agreement

Cluff Natural Resources (CLNR) jumped on Wednesday after it signed an exclusivity agreement with a major international oil and gas company for a definitive farm-out agreement.

CLNR said that the counterparty is required to enter the farm out agreement by 31 January, with completion by 28 February, for the P2252 licence.

Graham Swindells, chief executive of CLNR, said: "We are delighted to have selected a highly regarded international oil and gas major as our preferred partner for P2252, which contains the Pensacola Prospect. This represents a major step forward for the licence and reflects the significant amount of work the team has done to de-risk it."

The AIM traded company also announced that it has been granted six-month initial licence extensions for its two wholly owned Southern North Sea Gas licences P2252 and P2248, which were awarded in the UK's 28th Licensing Round, to 31 May 2019.

"The board and I are also very pleased that the initial term of both of these highly prospective licences is to be extended. With the OGA's support, we are now able to continue discussions to secure partners in an oil and gas sector with an improved appetite for high impact exploration and an increasingly positive outlook for the North Sea," said Swindells.

CLNR’s shares were up 15.51% at 2.57p at 1225 GMT.