Cluff Natural Resources Share Discussion Threads

[vivgav] 30/8/2017 13:34

CLNR on today's VOX podcast.

[doshdabbler] 30/8/2017 10:46

The board have not admitted there will be a dilutive placing under 2p

[anley] 30/8/2017 10:40

Talkman is quite right to mention "jam tomorrow". My take on all of this is as follows:

The cash will have run out by November so another dilutive issue at under 2p will be required. The Board have admitted this.

Therefore there is no need to buy shares until one knows how much is needed as the brokers will screw CLNR to get new shares at under 2p......wouldn't we all do the same?

At 2p CLNR has a market cap of sum £6.5m - a clean shell ready for someone else to take-over and produce shareholder value.

Do read the Investing Policy in the statement as it says it all.....................

[clickon] 30/8/2017 10:33

Plus constant sells up to the penultimate day before RNS with no activity the day before, I consider that suspicious.

[clickon] 30/8/2017 10:30

I noticed repeated sells coming up to this announcement day after day. I was concerned that that would be a portent for an RNS like this, so whoever was selling did they know the way this was going. Maybe the LSE needs to investigate share activity?

[soulsauce] 30/8/2017 09:42

If you are crying in to your beer with an 8% fall you shouldn't be either fella.

[talkman2] 30/8/2017 09:41

Normal Cluff waffle with just the possibility of jam tomorrow. The only certainty going forward is more dilution. Same old story. This company has delivered absolutely nothing , in real terms.

[therealdeal5] 30/8/2017 08:43

8% is a collapse in my book on 50,000 shares traded, get a life? I would say get an education fella! If you're happy with that then you shouldn't be investing!

[soulsauce] 30/8/2017 08:23

Collapse? Negligible shares traded, just marked down by MMs. No partner in sight, we must have read a different statement. Getrealdeal.

[therealdeal5] 30/8/2017 08:22

If I buy 50,000 will it take it up 8% ?

[therealdeal5] 30/8/2017 08:22

A sell of 50,000 shares takes this down over 8% really? Lmao

[therealdeal5] 30/8/2017 08:14

Obvious this was going to collapse after that RNS, no partner in sight! Summer has come and gone!

[therealdeal5] 30/8/2017 07:40

Well let's hope they lift the Sp with some sort of news to raise more funds and not at these prices!

[bronislav] 30/8/2017 07:36

I mentioned that in the post angus,they have likely already started the money raising process.

[angus17] 30/8/2017 07:33

Apart from not much cash left.

[bronislav] 30/8/2017 07:24

Seems all good,just a waiting game.Discussions ongoing with interested PARTIES..New aquisition likely in the short to medium term.moneys needed in the fourth quarter,bidding in the licensing round.

[cpap man] 30/8/2017 07:13

Cluff Natural Resources Plc / Index: AIM / Epic: CLNR / Sector: Natural Resources

30 August 2017

Cluff Natural Resources Plc ('CLNR' or 'the Company')

Interim Results



Cluff Natural Resources Plc, the AIM quoted natural resources investing company, is pleased to announce its interim results for the six months ended 30 June 2017.



Highlights

· Scoping Study on Cadence-Scremerston and Basset Bunter prospects on Licence P2248 in Southern North Sea indicated robust economics and highly positive NPVs in various development scenarios

· Implied extrapolated NPV (un-risked) of £697 million for the six identified prospects on P2248

· Data room opened to secure partner(s) to participate in drilling exploration wells on the Company's licences

· Significant level of interest for farm-out - in dialogue with several interested parties

· Actively pursuing a number of production and appraisal investment opportunities

· Cash position of £893,000 as at 30 June 2017 (31 December 2016: £1.7 million; 30 June 2016: £955,000)

· Cash used in operations for the period £687,508 (H1 2016: £665,836)

· Loss for the period £774,288 (H1 2016: £662,473)



Chairman and CEO's Statement



Whilst we have added significant technical clarity to our two licences in the Southern North Sea, it is difficult to fully articulate the effort which we have invested in promoting the farm-out of these licences; in pursuing our strategy to add additional assets to our portfolio; and in preparing our bidding strategy for the UK's 30th Licensing Round, frustratingly delayed by the recent General Election. However, the Operating Review sets out in detail the progress which we have made during the period.



In April, we published a Scoping Study prepared by Xodus Group which indicated robust economics for a range of development options for just two of our lower risk prospects on Licence P2248: the Cadence-Scremerston Prospect and the Bassett Bunter Sandstone. The Study indicated highly positive NPV values in various P50 (Prospective Resources) development scenarios for both of these prospects and an implied extrapolated un-risked NPV for the six identified prospects on Licence P2248 of £697 million.



Independent confirmation of these prospects' commercial viability reinforces the Company's view of the quality of our existing assets and, as such, facilitating the drilling of one or more of our Southern North Sea gas prospects remains our absolute priority. We have had a very encouraging response to our farm-out process and are in dialogue with a number of major oil and gas companies. The sector has recently been characterised by a spate of large M&A deals involving major regional players which has, we believe, limited the ability of such companies to make investment decisions while deals complete. However, it is anticipated that as these deals are completed, more focussed E&P businesses are emerging with an enhanced ability to invest in exploration in the Southern North Sea.



The 30th Licencing Round, announced on 25 July 2017, represents an exhilarating challenge. Over 800 blocks have been made available for application by the UK's Oil & Gas Authority, which includes a large inventory of prospects and undeveloped discoveries. The Round closes on 21 November 2017 and awards are expected to be made in Q2 2018. The 30th Round provides us with the opportunity to further expand our portfolio of North Sea licences and to take advantage of the more flexible "Innovate" licence regime. We have already identified our target blocks and our technical work to support our applications is well underway.



Meanwhile, in addition to our intention to participate in the 30th Round, we are committed to further diversifying our portfolio with an investment in one or more oil and gas assets. We have been actively pursuing a number of opportunities, including both onshore and offshore production and appraisal assets which offer cash flow and, in the case of appraisal, significant value enhancement, as and when commerciality is demonstrated. It is my objective that we shall complete one or more of these deals in the short to medium term.



There is so much focus now in the UK on heavily subsidised renewables that the North Sea seems to have receded in significance and yet, there remains in the North Sea, not only massive infrastructure, but also the potential for discoveries of new reserves of oil and particularly of gas, of which the UK is badly in need. Ten years ago, the UK was self-sufficient in gas, whereas now we import over 50% of our requirement from, inter alia, Norway, Qatar, Algeria, Russia and Peru! This figure is increasing at an alarming rate and security, as well as commerciality, must dictate that the North Sea is an absolute priority for exploration.



Therefore, our mission is three-pronged: to farm-out our existing licences and achieve drilling; to invest in additional assets; and to add to our portfolio via participation in the 30th Round.



Operating Review



Existing Licences - P2248 and P2252

Technical work has continued on the Company's 100% owned assets P2248 and P2252 located in the Southern North Sea. In response to initial constructive feedback received at the outset of the data room process, the work has primarily focussed on addressing the key risks associated with prospects and has significantly increased the geological chance of success associated with a number of the prospects.



The key emphasis has been on quantifying the fault seal risk associated with the Cadence prospect on Licence 2248 and the potential for direct hydrocarbon indicators (DHIs) to be associated with amplitude anomalies for each of the Bunter prospects.



The detailed structural analysis of the Cadence prospect has demonstrated clear fault linkages and the potential for the faults to support very significant hydrocarbon column heights within the Cadence structure and the Scremerston Formation in particular. The analysis of the amplitude versus offset (AVO) characteristics of the anomalies associated with each of the three Bunter Sandstone prospects has clearly demonstrated a response which is analogous to neighbouring fields and discoveries but which is not observed elsewhere across the block. The results of the work have positively impacted the view on technical risk associated with the prospects and updated information has recently been communicated to those parties involved in the data room process.



Following on from the Competent Persons Report published in December 2016 an economic feasibility study was also completed for key prospects on P2248 by Exodus Group. The analysis indicated attractive economics for standalone prospects and significant upside if exploration proved gas on multiple prospects. NPV10 valuations of £47.6 million and £41.8 million, for Cadence Scremerston and the Bassett Prospect respectively, combined with payback periods of less than three years and robust economics down to a gas price of 35p/therm provide significant justification for the proposed exploration drilling campaign on P2248.



Farm-out Process

Conditions within the UK Continental Shelf have remained challenging for investment at the asset level, with limited farm-in activity reported within the Southern North Sea during the previous six months. We believe that this has been largely driven by large corporate level M&A deals which have seen a number of key regional players effectively paralysed while announced transactions complete and newly acquired portfolios are assessed in detail. While frustrating in the short term, the Board is encouraged by the level of M&A activity in the UK North Sea which demonstrates significant ongoing interest in the basin. The Board is also of that view that many of the transactions, which involve separating oil and gas exploration divisions from risk averse utilities and conglomerates, will be highly positive for the UK Continental Shelf in the medium to longer term and will result in the formation of new focussed and funded E&P companies with a vested interest in exploration within the Southern Gas Basin.



As mentioned in the Chairman and CEO's statement, the Company has seen further interest from new parties in viewing the data room and remains in dialogue with those companies who have shown significant interest in the portfolio to date. The farm-out process is however taking longer than anticipated. We will continue to review market conditions and appetite with respect to achieving the best possible result from the ongoing process, as well as investigating alternative financing options for progressing drilling on selected prospects.



As licences P2252 and P2248 are due to expire on 30 November 2017 the Company has also applied to the Oil & Gas Authority for a continuation of licences P2252 and P2248 beyond this date should additional time to conclude the farm-out process be required.



30th Offshore Licencing Round Participation

The UK's 30th Offshore Licencing Round was announced by the Oil & Gas Authority on 25 July 2017 with over 800 blocks in the mature areas of the UKCS on offer. The Company intends to be an active participant in this process and has high graded a number of potential targets, including blocks which contain existing discoveries and significant exploration upside. The round is open for 120 days with applications to be submitted before 21 November 2017 with licence awards expected in Q2 2018.



Portfolio Growth

In addition to organic growth via licencing rounds the Company has evaluated a number of more mature opportunities including lower risk, higher impact appraisal projects and minority stakes in a number of producing assets. Detailed assessment continues on selected opportunities and the Company will continue to actively seek appropriate exploration, appraisal and production opportunities which have the potential to de-risk the portfolio and add significant shareholder value.



Financial Review

In the six months to 30 June 2017 the Company incurred a loss for the period of £774,288 compared with a loss of £662,473 for the six months to 30 June 2016.



The current period loss includes non-cash share based payment charges of £86,263, compared with £62,240 for the six months to 30 June 2016.



Cash used in operations for the six months to 30 June 2017 was £687,508 (2016: £665,835). In addition, £148,419 of expenditure incurred was capitalised (six months to 30 June 2016: £174,189) representing costs directly related to the development of the Company's two 100% owned Southern North Sea licences.



Cash balances as at 30 June 2017 stood at £892,969 (31 December 2016: £1,707,910; 30 June 2016: £955,035).



No ordinary shares have been issued since the Company's issue of shares in November 2016. Therefore, the number of ordinary shares in issue at 30 June 2017 remains unchanged at 329,393,532.



In May 2017 warrants over 9,340,000 ordinary shares expired, leaving no further warrants outstanding over the Company's ordinary shares.



In the financial statements for the year to 31 December 2016 the Company stated that based on the cash balance at year end, and the Company's commitments, the Company had adequate financial resources to cover its budgeted exploration and development programme until the fourth quarter of 2017. Based on current cash balances and the Company's commitments, the funding position remains unchanged. Further funding will therefore be required during the fourth quarter of 2017 to allow the Company to meet its commitments and to fully implement its strategy beyond this period. The Board anticipates that these further funds will be raised, most likely by way of equity, as the Company has done successfully in the past.



JG Cluff

Chairman & Chief Executive

30 August 2017

[therealdeal5] 29/8/2017 21:59

Come on Cluff, greed has got a hold of me!

[doshdabbler] 25/8/2017 15:28

More buying. Hopefully a tick up in time for the holidays

[doshdabbler] 25/8/2017 10:04

Nice buy. Progress report next week

[maytrees] 25/8/2017 09:54

Good morning all

400,000 shares buy earlier?

[iamnotanumber6] 25/8/2017 09:24

Sounds more like desperation....benefit money run out already unreal?

[therealdeal5] 25/8/2017 08:05

Come on Cluff! Greed has got a hold of me!

[bronislav] 25/8/2017 07:28

Should be no obvious reason for a delay in interims.Next few days after bank holiday would be the favourite.