Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Ithaca Makes Takeover Offer for Valiant Petroleum

change text size

North Sea-focused Ithaca Energy has made a $309 million offer for Valiant Petroleum that it expects will result in the establishment of a leading mid-sized oil and gas operator in the region.

Ithaca is focused on production, appraisal and development activities in the North Sea, while Valiant has what Ithaca's management describes as "a balanced portfolio" of assets with a primary focus on the UK and Norway.

Ithaca expects that the acquisition will see a more than doubling of its current forecast for 2013 production to between 14,000 and 16,000 barrels of oil equivalent per day (boepd), increasing to approximately 27,000 boepd in 2015. It would also see Ithaca's 2P reserves double to 74 million boe.

Ithaca reported that the Valiant board of directors, which is advised by Morgan Stanley, considers the terms of the acquisition to be fair and reasonable.

Ithaca Chairman Jack Lee commented in a statement:

"This proposed acquisition represents a significant step forward in the execution of Ithaca's strategy to build a highly profitable 25kboe/d North Sea oil and gas company. The combined assets of the two groups have a strong strategic fit, with the acquisition materially increasing and broadening Ithaca's producing asset base and reserves portfolio."

Valiant Chairman Kevin Lyon added:

"We are pleased to announce Ithaca's recommended offer to our shareholders… The combination with Ithaca will create a leading North Sea oil and gas operator with a diverse production and reserves asset base from which to pursue new and exciting growth opportunities."

In a separate announcement Friday Valiant said that drilling on the Timon prospect in the northern UK sector of the North Sea, on blocks 211/11b and 211/16b, has finished and the well will be plugged and abandoned after Jurassic sands there were found to be poorly developed. Valiant has a 10-percent share in the P1633 license on which Timon is located. 



A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

More from this Author
Jon Mainwaring
European Editor | Rigzone.com
 -  UK Announces 14th Onshore Licensing Ro... (Jul 28)
 -  Statoil Cut 1,000 Jobs during 2Q (Jul 25)
 -  Q&A: GE's GirlsGetSET Initiative (Jul 24)
 -  Norwegian Seismic Survey Firms See Mix... (Jul 24)
 -  North Sea Super Puma Crash: Lessons Le... (Jul 23)
Most Popular Articles
From the Career Center
Jobs that may interest you
Motorhand
Expertise: Motorman
Location: Oklahoma City, OK
 
Derrickhand
Expertise: Derrickman
Location: Oklahoma City, OK
 
Sales Manager - O&M
Expertise: Business Development
Location: Houston, TX
 
search for more jobs