NORTH Sea oil pioneer Algy Cluff has made a £230,000 gain on the sale of shares in the business he chairs to City grandee Michael Spencer’s IPGL.
The deal involved the sale of 10.6 million shares in Cluff Natural Resources, which has been generating interest in the oil and gas industry with an exploration drive in the North Sea.
Read more: North Sea exploration deal coup for oil and gas pioneer
Mr Cluff refocused the business on the North Sea after shelving a controversial plan to produce gas by burning coal held beneath the Forth.
The deal with IPGL provides a further vote of confidence in its prospects on the part of Mr Spencer, who developed the Nex Group broking business that was bought by CME Group for £3.9billion last year.
IPGL has increased its holding in Cluff Natural Resources from 10.1 per cent to 12%. It is the biggest individual holder.
The latest deal was concluded after CNRL turned heads in the City on Friday last week by announcing that Shell had acquired a stake in a 100 million barrel oil equivalent prospect on its acreage.
Read more: Exploration back on the agenda in North Sea
Cluff Natural Resources said yesterday that Mr Cluff had exercised options to buy 10,648,709 shares at 1.325p each. It said Mr Cluff had notified the company that he had agreed to sell the shares resulting from the exercise of the options to IPGL, a company controlled by Michael Spencer, at 3.5p per share.
Mr Cluff founded the firm that discovered the Buchan field in the North Sea in 1975 after serving as a Grenadier Guards officer. He moved into gold mining in Africa before returning to the oil and gas business.
Read more: Cluff takes swipe at 'depressing' energy policy
Mr Spencer has invested in financial services firms such as the London-based Viewforth Investment Partners hedge fund operation through IPGL.
Mr Cluff retains 13,038,502 ordinary shares in CNRL, around 2% of the total.
Shares in the Aim-market listed firm closed up 0.17p at 3.3p.
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