LONDON (ShareCast) - Cluff Natural Resources gained Monday on news the investment company was awarded two underground coal gasification (UCG) licences in the UK.
Shares jumped 20.69% to 4.38p after the AIM listed company announced it was given the green light from the Department of Energy and Climate Change for the licences as part of a strategy to build a portfolio in the natural resources sector.
Cluff will receive 100% of the Loughor Estuary Project Carmarthenshire, Wales, and the Dee Estuary Project on the borders of Merseyside and Northern Wales, covering a total of 111 hectares in the UK.
The company will apply for planning and environmental permits to advance the two projects to production.
Algy Cluff, Chairman and Chief Executive of Cluff Natural Resources, said: "I am delighted to be able to announce the award of these licences which represent a low cost entry into underground coal gasification which is becoming a burgeoning industry.
"It is well known that coal seams extend into the offshore waters around the UK and with proven technology now available to utilise this energy source, we intend to embark on the process by extracting gas from these coal seams."
They are the first in a series of natural resource projects the company seeks to acquire, he added. Cluff will continue to evaluate a number of oil, gas and mining investment opportunities.