- Cluff Natural Resources said it would begin the formal farm-out process of its Dewar Prospect with the aim of attracting one or more partners to provide funding for future exploration.

The company said it believed the prospect to be 'drill ready and expects a farm-out to be supported by a commitment to drill an exploration well on Dewar.'

An early-stage feasibility study carried out by io oil and gas consulting, ha=d identified a viable development scenario based on a two-well subsea development, tied back to the BP operated Eastern Trough Area Project Central Processing Facility located approximately 5km to the north west of the prospect. Other potential offtake options had also been identified as part of this study, the company said.

'On this basis, the Dewar project is estimated to have a post-tax NPV10 of £555 million and a post-tax project IRR of 123%, in a P50 prospective resource scenario,' it added.

'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,' said Cluff's Chief Executive Graham Swindells.

'We continue to invest in progressing the licences awarded in the 30th Offshore Licencing Round and remain focussed on building a portfolio of exploration and appraisal assets of varying levels of maturity which will provide further drilling opportunities, in addition to the Selene and Pensacola Prospects recently farmed out with Shell.'

At 10:21am: [LON:CLNR] Cluff Natural Resources PLC share price was +0.03p at 1.73p

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