Cluff shifts focus away from UCG in Scotland

1 January 2016

Cluff Natural Resources reports that it has shifted its primary focus from its underground coal gasification (UCG) assets (in particular the development of its Kincardine Project in Scotland) to developing its portfolio of five conventional oil and gas licences in the Southern North Sea. This was precipitated, the company says, by the introduction of a moratorium on UCG in Scotland in October 2015 despite previous assurances received from the Scottish government. The moratorium will remain in place pending a government study and public consultation, which is expected to conclude in spring 2017.

While Cluff says it is "confident that the evidence in relation to UCG will result in the moratorium being lifted", it has stopped all expenditure related to the Kincardine Project and is now focussing its attention outside of Scotland, in particular the North East of England, where the company "believes the political situation is more favourable with regards to UCG and considerable support exists for investment in energy and industry with a view to regeneration."

Cluff says it has a total of nine UCG licences in the UK of which six are based in England and Wales and are therefore not subject to the moratorium.


(Originally published in MPS January 2016)

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