Latest Developments

Here you will find industry news regarding Cluff Natural Resources.

BP to double UKCS production by 2020

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BP spuds new well in the Southern North Sea

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OPEC agrees first output cut since 2008

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BP announces acquisition of interest in North Sea exploration prospects

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Statoil farms-in to North Sea

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OGA launches 29th Offshore Licensing Round

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UK Government invests a further £20M in North Sea Seismic Campaign

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Allenby Capital Updates CNR Research Note - July 2016

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Algy Cluff: "Get On With It"

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Faroe Petroleum poised to snap up North Sea bargain

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Budget 2016: North Sea oil taxes cut

Chancellor of the Exchequer George Osborne has announced an overhaul of the North Sea tax regime in his annual Budget.  The main rate of tax will be reduced from between 50-67.5% to a flat rate of 40% across all fields, the petroleum revenue tax (PRT) to be eliminated entirely and the supplementary charge halved to 10%, backdated to the start of the year.

These moves reinforce the Government’s long term commitment to Oil and Gas production from the North Sea and compliment the industry’s own endeavours to improve efficiency and boost the sector’s competitiveness in the face of low oil prices.

More information can be found via this external link.

OGA Launches Exploration Licence Competition

The Oil and Gas Authority (OGA) has launched a £500,000 competition to develop new perspectives on frontier areas of the United Kingdom Continental Shelf (UKCS). The data acquired during last year’s Government-funded seismic surveys of the Rockall Basin and Mid North Sea High areas is being encouraged to be used to facilitate new play initiatives in a mature area in light of the 29th Seaward Licensing Round later this year.

More information can be found via this external link.

OGA Government Funded Seismic to be Released 31st March 2016

The OGA has announced it will publically release 10,000 km of newly acquired broadband seismic, which includes significant coverage of CNR’s Southern North Sea acreage, on the 31st March 2016.  These high quality regional lines will be crucial in refining CNR’s approach to assessing the potential of the Carboniferous both on its blocks and regionally.

More information can be found via this external link.

Wood Mackenzie sees increased M&A and $65 dollar oil in 2016

Mood Mackenzie’s M&A outlook for 2016 predicts that the North Sea will quickly re-focus from survival to growth as oil recovers to $65 a barrel later in the year.  In the meantime companies stressed by large debt burdens, cashflow negative production or major exploration commitments will be forced to divest assets providing targets for those companies well positioned to take advantage of counter-cyclical opportunities.

The company highlights how quickly sentiment can change and the importance of first mover advantage and securing deals before competition grows and inflation sets in.

More information can be found via this external link.

Competent Person’s Report confirms significant potential across CNR acreage

CNR appointed Axis Well Technologies to undertake an independent review of it’s 5 Southern North Sea gas assets.  Axis confirmed significant prospective resources of 132BCF of P50 Propsective resource with an additional 713 BCF of upside at ‘lead’ and ‘play’ levels.

For more information download the CNR press release Prospective Resources – Southern North Sea Assets.

Ineos completes £490M acquisition of DEA’s Southern North Sea Gas Fields

Ineos completes a major acquisition and formation of a new Southern North Sea gas player ‘Ineos Breagh’.  The £490M pound acquisition of the DEA portfolio contains more than 30 licences including 9 producing fields of which Breagh, located adjacent to a number of CNR licences, is by far the most significant.

More information can be found via this external link.

First production from Cygnus on track for year end

The last major structure for the new Cygnus development hub has been towed from Hartlepool. The Cygnus field is located to the South East, and along strike, of CNR licence P2261. The Cygnus field has proved reserves of <600BCF and is expected to produce at rates of around 250MMscf/d, or approximately 5%, of the UK’s natural gas from the end of 2015.

More information can be found via this external link.

Falling rig costs good news for North Sea explorers

Wood Mackenzie expects operating costs in the North Sea to plummet with rig rates down by 20% in 2015 and expectations of a further 15% reduction during 2016 on the back of lower oil prices. For those operators that are in a position to take advantage of reduced prices it provides a great opportunity to get exploration wells drilled at rock bottom prices.

More information can be found via this external link.

Oil and Gas Authority formed to maximise recovery from the North Sea

The Oil and Gas Authority (OGA) was formed to deliver the UK’s Maximising Economic Recovery strategy through effective regulation and stewardship of the country’s oil and gas resources. An independent, arm’s length organisation, the OGA has a critical role to play in influencing operating behaviours in the industry to create greater collaboration, and in promoting investment in the UK oil and gas sector. Headquartered in Aberdeen, the OGA was established as one of the key recommendations of Sir Ian Wood’s 2014 review of oil and gas exploration and production activities on the UK Continental Shelf.

More information can be found via this external link.

Sterling Resources update on Breagh Production

Sterling Resources reports better than expected production from the Breagh field with average gas production of 126MMscf/day (equivalent to 5.7mmboe/d) at an operating cost of around USD$8.60/boe. Breagh produces via stimulated horizontal wells in early Carboniferous Sandstones which are also target reservoirs across CNR’s exploration acreage including the nearby Lytham-Fairhaven prospect on licence P2252.

More information can be found via this external link.

Centrica Discovers Gas at Pegasus West, Southern North Sea

Centrica has made a significant new gas discovery with the Pegasus West well. Located some 7kms away from an earlier discovery at Pegasus North on block 43/13, which is adjacent to CNR licences P2261 and along strike from P2248, the Pegasus West well flowed gas from Carboniferous Sandstone at a combined rate of >90MMSCF per day. This is a significant step in establishing the production potential of the early Carboniferous in the Southern North Sea and could see the development of a new production hub which opens up this exciting new play.

More information can be found via this external link.