Rocksource/Valiant Deal Faces Objections

A proposed sale between Rocksource and Valiant Petroleum has faced objections on the side of Rocksource's shareholders, as an extraordinary general meeting has been called to discuss the sale.

On Monday, it was announced that Valiant would take a stake in 12 of Rocksource's licence areas in Norway, including the Norvarg gas discovery in the Barents Sea and other assets in the Norwegian North Sea, Barents Sea and Mid Norway.

The deal was agreed at a cost of €13.8 million (104 million Norwegian krones) after tax.

It emerges that at least one of Rocksource's stakeholders Petrolia, which holds a 10 per cent stake in the company, was not informed of the deal. As a result, the company has called an extraordinary general meeting to discuss the sale.

"In accordance with the Security Act § 5-7, Petrolia owning more than 1/20 of the shares through its subsidiaries is entitled to demand an EGM to resolve on this matter to be held within one month after the call to approve of such transaction, and is hereby sending a requirement for such an EGM to be held," a statement for the company said.

"The Board of Directors are obliged not to approve nor carry out sale of major parts of the company`s assets before the EGM has resolved on the transaction."