NORTH Sea oil and gas pioneer Algy Cluff has predicted a boom in activity in the area as the company he heads makes a big push for growth.
Cluff Natural Resources has raised £750,000 from investors as the company looked to increase its chances of success with what it described as a substantial application for additional licences in the UK’s latest round.
The company is focused on the North Sea after shelving plans to produce gas by burning coal under the Firth of Forth.
Mr Cluff told investors CNR’s board attaches high importance to the 30th Round and believes it will herald a new era of exploration and development in the UK North Sea.
“Strong oil and gas prices, political stability in an unstable world, existing infrastructure and known geology render the North Sea one of the most desirable basins,” said Mr Cluff. The former Grenadier Guards officer started the firm that made the giant Buchan find in 1975.
He added: “The Board … believes that the Company’s balance sheet should be strengthened in anticipation of favourable consideration being given by The UK Oil and Gas Authority to our application for licenses.”
Mr Cluff said CNR is in talks with a number of companies that have shown interest in buying into its existing licences in the Southern North Sea.
It hopes to start drilling on them next year.
Brent crude hit a three year high of $74.72 per barrel on Thursday amid expectations major exporters would extend production curbs they introduced last year.
The price fell from $115 per barrel in June 2014 to less than $30 early in 2016 after growth in supplies ran ahead of demand.