Cluff Natural Resources (CLNR) has begun the farmout process for its Dewar Prospect (Licence P2352) located in the North Sea.
An early stage feasibility study found that a two-well subsea development is estimated to have a post-tax NPV10 of £555 million and post tax IRR of 123% in a P50 prospective resource scenario.
The projections were based on linking the development to the BP operated Eastern Trough Area Project Central Processing Facility located about 5km to the north west.
Cluff had access to recently re-processed 3D seismic data and drilling results which were unavailable to previous licence holders.
Shares ticked up 1.47% to 1.73p each following the announcement
Cluff Natural Resources acquired the licence during the 30th offshore licencing round earlier this year. Licence P2352, is located in a mature part of the Central North Sea and in 90m of water.
Cluff estimates a 15 day well test and well costs of about £17 million, with the use of a heavy duty jack-up rig.
The prospect is estimated to contain up to 272 million barrels of light oil (stock-tank oil initially in place), and P50 Prospective Resources of 39.5 million barrels.
Cluff has begun searching for partners to reduce its 100% working interest in the Licence and provide funding to further exploration on the block.
Commenting, Cluff's Chief Executive Graham Swindells said: "The Dewar prospect represents a significant and valuable exploration target which is located in close proximity to existing production infrastructure.”
“The successful farm-out of two of our Southern North Sea licences to Shell earlier this year has led to a growing recognition of our technical team within the industry and provides a great platform from which to launch this next farm-out process.”
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