Valiant Clarifies Debt Financing for Don Fields
Valiant Petroleum plc has noted the recent share price volatility in oil & gas equities caused by the difficult credit conditions in the global financial markets and would like to clarify its current access to debt financing.
In November 2007, Valiant entered into a $200 million debt facility to develop its equity interests in the West Don and Don South West fields (together the "Don Fields") in the UK sector of the northern North Sea. As noted in a press release dated May 28, 2008, the syndication phase of the Debt Facility was completed to a group of international banks.
All conditions precedent to the Debt Facility have been met and on September 26, 2008, Valiant successfully completed a $60 million draw down under the Debt Facility to fund development costs on the Don Fields.
Valiant maintains a close relationship with its key lenders, one of which is a significant shareholder in the Company, and is not aware of any reason why it would not be able to continue to draw down under the Debt Facility to meet the ongoing development costs for the Don Fields.
Valiant currently anticipates giving a more comprehensive update on the Don Fields development as part of a Detailed Trading Statement due to be issued no later than October 31 for the period to September 30, 2008 in accordance with its change in financial year-end to December 31.