Valiant Exploration Limited has signed a sale and purchase agreement to acquire from Dana Petroleum (E&P) Limited its 50% stake in License P.212, Block 211/8a and License P.296 Block 211/13a Rest of Block Including Penguin Field (excluding Penguin West and Penguin East), which contain the Banquo and Helena undeveloped discoveries.
Completion of the transaction is subject to various conditions and consents, including relevant governmental approvals. Valiant is currently operator on both licenses and following completion will own 100% of the blocks.
Following the acquisition of Banquo and Helena it is Valiant's intention to seek a strategic partner to jointly appraise and develop these discoveries potentially alongside its Tybalt Prospect which is located in the adjacent Block 211/8c and was awarded to the Company in the UKCS 25th Offshore Licensing Round.
Banquo is a Triassic discovery drilled by Ranger Oil (UK) Ltd in 1987 and tested at an initial rate of 6,487 barrels of oil per day and 3 million standard cubic feet per day ("mmscfd") of gas. Helena is another Triassic discovery, 6 km to the Southwest of Banquo, drilled by Shell U.K. Limited in 1974 and tested at a rate of 10.3 mmscfd gas and 3,300 barrels of condensate per day.
Further information regarding these fields will be provided to the market as part of Valiant's 2008 preliminary results which are anticipated to be released during the first week of April. Valiant remains in a strong financial position with current cash levels similar to those reported to the market on October 30, 2008 and first production from West Don continues to be anticipated before the end of March this year.
Peter Buchanan, Valiant's CEO, commented on the acquisition, "We are extremely pleased to have secured the remaining interests in the Banquo and Helena fields. These undeveloped discoveries consolidate our operated position in one of our core areas and have the potential to provide the Company with further strong production growth in the medium term. "
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