Cluff Natural Resources Plc has confirmed the Company's operations and its plan of work around Selene and Pensacola wells remain on-track with day-to-day operations are unaffected by the recent turmoil across the both the commodity and Equity markets.
The Company is in a position of relative strength in these uncertain times with 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) and therefore remains fully funded for its share of the Selene and Pensacola wells and, on current plans, is well covered for its working capital requirements through to the end of 2021 financial year.
Over the past two weeks the shares have traded down from 1.2p to a low of 0.75p, despite the intrinsic strength in the Company, its finances and overall strategy.
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."
However, while the Dewar farm-out process remains active, the Company sensibly anticipates that the current commodity market volatility may delay this farm-out within the timelines previously communicated. The Company is now reviewing the status of the farm-out process once some relative stability has returned to commodity prices in particular and the wider capital markets in general.
The Company is continuing 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 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.
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.
Follow News & Updates from Cluff Natural Resources here: