Cluff Natural Resources will have to reapply for a share in two North Sea licences after the Oil and Gas Authority said it would not grant an extension of their initial terms.
The company had previously revealed it had been given an extension on both of its 100% held licences P2248 and P2252 until next year.
But Burgate E&P has said an application it had made for the extension of two licences, of which Cluff has a 50% share, to the OGA have not been approved.
In a statement Cluff said it means the licence will expire at the end of next month.
The OGA has indicated it expects to make the licences available in the next licensing round which is planned for the first half of next year.
The company said it will have the opportunity to reapply for the licences under the OGA’s new “more favourable ‘innovate terms’”.
Chief executive Algy Cluff said: “These two 50% held licences represent the least mature assets in our oil and gas licence portfolio and a small proportion of our overall resource base.
“Our primary goal remains to pursue and secure the farm-out of our two most developed 100% held Licences, P2248 and P2252, both of which we consider to be highly prospective and have the potential to transform our company.”
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