News blog

Cluff Natural Resources

• BY: Andrew Hore |
• POSTED: 14/01/2013 |

Cash shell Cluff Natural Resources has been awarded two conditional underground coal gasification licences by the Coal Authority.

The licences are for the Loughor Estuary project, in Carmarthenshire, Wales and the Dee Estuary project, on the border of Merseyside and North Wales. CNR will seek panning and environmental permits for the licence. CNR is employing Keith Leighfield, who has five decades of experience in the sector and is a former director of licensing at the Coal Authority, to head the production team.

CNR intends to use controlled retracting injection point (CRIP) method to extract the gas. It involves the injection of oxygen and steam through a borehole into the coal seam with the resulting syngas extracted from another borehole.

CNR raised £3.75m from a placing at 5p a share, valuing the company at £4.35m. The shares ended the first day’s trading at 5.13p. The share price has fallen back since then but the acquisition sparked a 0.75p recovery to 4.38p, valuing Cluff at £3.81m. There was £3.16m in the bank at the end of June 2012.

CNR continues to assess other projects.

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