Cluff Natural Resources plans to raise around £1.8m through a placing and subscription of new ordinary shares at or around 2.5p apiece.
It is intended that the new ordinary shares in connection with the placing will be issued in two tranches, with the majority being conditional on the approval of shareholders at a forthcoming general meeting.
All new ordinary shares to be issued in the subscription will be issued conditional on the approval of shareholders.
Chairman and chief executive, Algy Cluff, has indicated an intention to participate in the subscription. And the company says certain of the current significant shareholders have also indicated their intention to take part in the placing and the subscription.
Members of the public will not be entitled to participate in either the placing or the subscription.
The directors expect that the proceeds will fund the company through to Q4 2017 and enable it to work towards its stated core strategic aims of:
– Farming down its 100% equity position in two production licences in the Southern North Sea Gas Basin which have a combined, independently assessed P50 Prospective Resource of approximately 1.9 TCF (approximately 330 million barrels of oil equivalent)
– Continuing to quantify and de-risk known leads and prospects both on existing licences and any further licences awarded as a result of the 29th offshore licensing round
– Completing the technical and environmental studies required to ensure successful participation in the 30th licensing round which is expected to be opened in 1H 2017
– Supporting the identification of potential complimentary low cost acquisitions to create a balanced portfolio of oil and gas assets within the United Kingdom Continental Shelf Cluff said: “As a company, we have achieved significant progress over the past year which culminated in the publication of the competent person’s report and independent confirmation of the significant resource potential contained within licence P2248.
“We are now focused on creating further value for shareholders from our 100% equity stakes in what we know to be highly valuable and strategic assets in the Southern North Sea. Over the coming months, the Company anticipates running a competitive farm-out process to ensure the best possible outcome for shareholders.”
At 9:42am: (LON:CLNR) Cluff Natural Resources PLC share price was -0.7p at 2.95p
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