Valiant Petroleum (LON:VPP), the oil and gas company with operations in the North Sea, announced that a farm-out has been agreed between its wholly owned subsidiary, Valiant Exploration Limited and Apache North Sea Limited for the Viola North prospect which is anticipated to drill in the summer of 2010. Under the agreement, Apache will pay 75% of the well costs for a 50% stake in the prospect, subject to a cap on the promoted costs. Apache will also participate in the drilling of a second exploration well, (expected to be in the Viola South prospect) subject to approval by the operating committee. The agreement also provides for Apache to become Operator in the event of a commercial development.
Valiant also confirmed today the farm-out agreement between Valiant Exploration Limited (VEL) and Agora Oil and Gas for the Tybalt prospect, which the company expects to spud at the beginning of April 2010, using the Diamond Ocean Nomad semi-submersible rig. Agora will take on some of the costs of the drill, and receive a 20% stake in the prospect in exchange. Valiant will remain the operators of the rig, retain a 80% working interest and have an option to participate in the drilling of the nearby Banquo disovery and an exploration well on the Helena prospect. Peter Buchanan, Valiant's CEO, commented:
"We are extremely pleased to reach agreement on the farm-out of our two key exploration prospects during 2010. These transactions will help balance the risk and expenditure in our exploration portfolio while exposing investors to the large potential upside associated with these prospects. We look forward to working together with our new partners in the coming months."
