Tom Winnifrith Bearcast: Malcolm stop dithering and sell your Tertiary, it is a dog that treats shareholders with contempt
Shares in Cluff Natural Resources (CLNR) ended 2018 above 2p though had fallen to sub 1.4p by December 2019. They have since recovered a bit, but at a 1.50p offer price - giving a £20 million market cap - there looks the potential for much more…and soon!
Making a profit on small oil and gas exploration and appraisal companies largely comes down to timing your buys and sells correctly, rather than just holding onto your shares through the ups and downs. With many of these companies the actual risk of holding for a drill often isn’t worth it, especially with exploration plays, but good money can still be made in the lead up to drilling activity, and by leaving some profit to run in the case of some of the safer appraisals. Buying when there is a general lack of interest and no immediate operational activity, and then being patient, is often the best way to get in at a good price – even if not necessarily the lowest price, as that generally comes down to a large slice of luck...
Some positive sentiment finally seems to be returning to UK offshore oil and gas companies, and Cluff Natural Resources (CLNR) could be in a position to benefit from that. Things have been pretty dire for the North Sea focused company, and although its assets revolve around gas, which has performed badly in comparison to oil of late, any renewed interest in the area should be of benefit.
The last couple of years have been a torrid time for those holding shares in small oil and gas exploration companies in general, with very few exceptions.
North Sea-focused Cluff Natural Resources (CLNR) is understood to be poised to announce encouraging gas reserve figures for its licences in the southern North Sea’s Lytham Field. Steered by seasoned resources entrepreneur and former owner of the Spectator magazine Algy Cluff, the company, whose shares have fallen from a 12-month high of 4.87p to 3p on energy price weakness and delays to its underground coal gasification (UCG) project in Scotland, is thought by observers to have established potential reserves of more than 800 billion cubic feet, which could be worth between $20 million (£13.3 million) and $40 million.
The trick with technical analysis methods is of course to get involved just when the stock starts heating up in terms of the positive moment for the share price. This looks like it is about to happen as far as Cluff Natural Resources (CLNR) shares are concerned currently.
Underground coal gasification (UCG) and North Sea gas play Cluff Natural Resources (CLNR) has called for drastic changes in the planning regime for UCG projects and in the tax treatment of exploration for resources in the UK North Sea. The AIM-quoted company, with licences in Scotland, north-west England and Wales, wants to establish a pilot UCG plant at Kincardine in the the Firth of Forth and is seeking partners to drill two appraisal gas wells in licences in the north-western Lytham Field ‘at no cost to ourselves’, having reduced interim losses nearly 8% to £745,000.
Featuring Cluff Natural Resources (CLNR), Empresaria (EMR), Jubilee Platinum (JLP), Pinnacle Technology (PINN), Weatherly International (WTI)
With Europe’s biggest coal-fired power station at Longannet in Fife set to close next year, diversified underground coal gasification (UCG) play Cluff Natural Resources (CLNR) sounds optimistic as it prepares the planning application for its flagship Kincardine UCG project in the Firth of Forth. Steered by veteran resources entrepreneur and former owner of the Spectator magazine Algy Cluff, the company, whose AIM-quoted shares have slipped from a 5p 12-month high to 3.88p, has submitted what finance director Graham Swindells calls ‘a solution to the Longannet closure’ to the Edinburgh government, which could be faced with a 40% cut in Scotland’s power supply as a result of the shut-down.
Diversified coal gasification play Cluff Natural Resources (CLNR) has raised £2.2 million to advance projects including one find with a potential 450 to 500 billion cubic feet of gas, worth some $1 billion (£662 million). The company raised the money at 4.25p, having tapped AIM for £2 million in December at a lesser 3p, and expects to spend £1.4 million of it preparing this year to seek planning approval, including submitting an environmental impact assessment, for test production at its key Kincardine underground coal gasification (UCG) project in Scotland’s Firth of Forth, which has been estimated to hold up to 350 million tonnes of coal.
Coal gasification play Cluff Natural Resources (CLNR) has signed a memorandum of understanding with Halliburton, the $21 billion (£14 billion) US oilfield services giant, to collaborate in developing AIM-quoted Cluff’s Underground Coal Gasification (UCG) and Southern North Sea gas assets in the United Kingdom. Cluff, spearheaded by veteran entrepreneur and executive chairman Algy Cluff, has so far won eight UK licences for deep UCG covering 613 sq. km., as well as five promote licences covering 11 blocks in the Southern North Sea, and the company cites this new agreement with a major world participant as ‘a significant step’ towards ‘the commercialisation of its deep UCG licences in the UK to unlock the vast energy potential of the country’s un-mined offshore coal resources’.
Underground coal gasification play (UCG) Cluff Natural Resources (CLNR) will look for partners after the award of 11 ‘promote’ licences’ near the Breagh gas field in the southern North Sea. The AIM-quoted company has also issued its first formal resource statement, of 335 tonnes of coal overall with more than 43 million of them judged suitable for the UCG process, for its wholly-owned Kincardine licence in the Firth of Forth.
Coal gasification play Cluff Natural Resources (CLNR) is preparing to drill a demonstration hole in the Firth of Forth or at another site after adding three new licences to its previous portfolio of five projects, offshore and inshore, in England, Scotland and Wales. Serial resources entrepreneur Algy Cluff, chairman and chief executive of the AIM-quoted venture, says the precise choice of site will depend on the speed of obtaining planning permission and stresses ‘we want to add value before dealing with potential partners.’
Algy Cluff, the veteran resources entrepreneur and former owner of the Spectator magazine, is on the look-out for deals to propel Cluff Natural Resources (CLNR) into the business of turning off-shore coal deposits into gas-producing assets in a way he and the company’s backers claim will be able to provide cheap and environmentally acceptable fuel supplies for years to come. Speculation has suggested potential partners could include German engineering and electronics giant Siemens or Swiss-based chemicals group Ineos, active at the Grangemouth oil refinery in the Firth of Forth, but AIM-quoted Cluff Natural remains tight-lipped.
Veteran resource entrepreneur Algy Cluff is back again with a new vehicle, Cluff Natural Resources (CLNR). Panmure Gordon analyst Jack Allardyce reckons that the shares, now 3.625p, are worth 13p a pop and explains why in a broker research note out today.
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