VETERAN oil and gas entrepreneur Algy Cluff has underlined his faith in the exploration potential of the North Sea after the company he runs was awarded licences in UK waters.
Cluff Natural Resources, which is working on plans to produce gas from coal that lies under the Firth of Forth, won five licences covering 11 blocks off England in the latest UK round.
Mr Cluff, chairman and chief executive of CLNR, said the award underlined the company's commitment to the UK and the North Sea. While oil prices have fallen sharply in recent months, Mr Cluff said the company sees significant upside potential for shareholders in the area.
He said: "CLNR has a strong interest in delivering conventional gas to the UK as well as a determination to safely and cleanly convert offshore coal to gas using UCG (underground coal gasification) technology."
The company said the licences are in an under-explored, emerging gas province of the Southern North Sea, which includes a range of interesting areas. They are in relatively shallow water where new conventional gas discoveries can be developed quickly and regional infrastructure is evolving rapidly.
Interest in the region has increased following breakthroughs in 3-D seismic surveying technology, which allows firms to acquire high resolution images from deep underground.
The company was awarded the blocks on a provisional basis in November, under the UK's 28th Offshore Licencing Round. It has received confirmation that the blocks have been formally awarded by the Government.
London-based CLNR has eight offshore deep underground coal gasification licences for sites around the UK coast - two in Scotland in the Firth of Forth, at Largo Bay and Kincardine.
While campaigners expressed concern about the gasification plans last month, Mr Cluff said the technology has significant environmental safety and could offer climate change benefits when combined with carbon capture and storage facilities.
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