Valiant Finishes 2009 in 'Strong Financial Position'
Valiant Petroleum announced its final results for December 31, 2009. This was a transformational year for the Company following the commencement of production from the West Don and Don Southwest fields located in the Northern North Sea.
- First oil achieved in April 2009 from West Don (Valiant, 17.275%) and July 2009 from Don Southwest (Valiant 40.0%)
- Two successful appraisal wells on Don Southwest into the 'H' Panel and the Horst block
- Completion of the acquisition of an additional 10.5% stake in the Causeway field and the remaining 50% stake in the Banquo & Helena undeveloped discoveries
- Net production during the year of 794.5 thousand barrels of oil ("mbbls")
- Proved plus probable reserves of 27.0 million barrels of oil equivalent ("mmboe") (2008: 26.2 mmboe) and best estimate contingent resources of 29.2 mmboe at December 31, 2009 (2008: 28.9 mmboe), a total of 56.2 mmboe (2008: 55.1 mmboe) representing a 2% increase from 2008
- Revenue of US $53.4 million representing 751.9 mbbls of oil sold during 2009 at an average realized sales price of US $71.0 per barrel
- Profit before tax for the period of US $10.5 million (2008: US $96.4 million loss) and profit after tax for the period of US $15.8 million (2008: US $59.7 million loss)
- Year end 2009 cash balance of US $112.2 million (2008: US $73.0 million), net debt of US $82.8 million (2008: US $60.3 million)
- Successful equity raise totaling GBP 66.5 million (US $109.0 million) (gross) through the placement of 12,547,170 shares at a price of 530p/share to fund 2010 development and exploration program
- Appointment of Kevin Lyon as Chairman on June 2, 2009 and David Blackwood CBE as non-executive director as of August 11, 2009
Objectives - 2010
- Complete second phase of the development of the Don Fields and continue to progress step-out exploration and appraisal opportunities in-and-around the area
- Production guidance for 2010 of 6,500 - 7,500 barrels of oil per day
- Seek to drill at least two material exploration wells in the Group’s current portfolio
- Submit Crawford Field Development Plan
- Complete reassignment of operatorship of Causeway field and submit revised Field Development Plan
- Build on the Group’s strong acreage position through participation in the 26th UK Offshore Licensing Round
- Pursue acquisition and consolidation opportunities
Peter Buchanan, CEO, commented, "Despite the challenging economic environment, the Group has delivered substantially against its targets for the year. With assets now spanning the lifecycle from production, through development and into exploration, Valiant has achieved its initial objective of becoming a full-cycle exploration and production business focused in the Northern North Sea.
The Group's asset base, combined with a strong financial position and a highly qualified team of people, provides an exciting platform to deliver material growth in the years ahead. We are very excited by the prospects for 2010 and beyond as the Group moves its other developments towards production and drills several high impact exploration wells, including Tybalt and Viola which have both been successfully farmed-out."