Valiant Takes Stake in Causeway Discovery
Valiant Petroleum will acquire Dana Petroleum's 14% interest in the Causeway discovery, located in the northern North Sea, for an undisclosed sum.
Valiant has also secured a £110 million debt and £10 million equity funding package from Bank of Scotland. The bulk of the financing will be utilized against the Company's share of the Don South West and West Don developments. Part of the funding will be used to enable the Company to acquire the Causeway interest and finance Valiant's share of the three well appraisal/development drilling campaign on the discovery, which commenced in May 2007.
The Causeway discovery lies close to the Company's existing Don interests. In August 2006, the East Causeway discovery well tested a combined flow rate of 14,500 barrels of light oil. Antrim, the Operator, have contracted AGR Peak Well Management of Aberdeen and the Transocean Prospect semi-submersible to drill 3 appraisal and development wells. It is intended that these wells will appraise 4 intervals of the Brent Reservoir and assist in the evaluation of tie back options for production to nearby facilities.
Peter Buchanan, Valiant Petroleum's Chief Executive Officer, commented:
"The Causeway acquisition complements our existing assets in the "Greater Don" area and is in line with our strategy of building a northern North Sea core area that contains low risk, but material opportunities. The £120 million funding package allows us to move our appraisal and development activities forward and I am delighted to welcome Bank of Scotland as a lender and an investor in Valiant Petroleum."