Life after Algy Cluff: North Sea doyen’s company looks for new licenses after founder leaves

London-listed North Sea explorer Cluff Natural Resources is hoping to win more drilling licenses as it looks to a future without its eponymous founder.

Chief executive Graham Swindells told City PM his firm is hoping to replicate its success from the government’s last licensing round when it won six licenses.

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The company last month announced its founder Algy Cluff, a doyen of UK oil exploration, would be leaving the firm. He keeps his 2.5 per cent shareholding in the company.

Cluff, 79, will be replaced as chairman by Mark Lappin, who spent years as UK sub-surface director at Centrica.

“Algy has an incredible reputation … he was one of the first guys in to the North Sea. He has done a fantastic job of steering us towards where we are now as a company, but as we enter into the operational phase of the development, Mark’s skillset is ideally suited to taking us forward,” Swindells said.

Oil giant Shell last month announced it would buy a 40 per cent stake in one of Cluff’s North Sea licenses for $600,000 (£470,000).

“The partnership that we have with Shell is just the beginning of a long-term relationship,” Swindells said. Shell said the sites were "highly promising gas prospects."

The company also wants to diversify its portfolio and hopes the Shell farm in will encourage others to follow suit and invest in Cluff.

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The company is set to put boats in the water to produce 3D seismic data in the coming months, Lappin said.

“There’s a tendency in the North Sea to take perceived wisdom … the technical team is not burdened with that,” he added.