Valiant Takes Rocksource's Norwegian Assets

Valiant Petroleum is set to increase its presence on the Norwegian Continental Shelf (NCS) with the acquisition of all of Rocksource's assets there. The deal will be completed for a price of 104 million Norwegian krones (approximately €13.8 million) post-tax.

Valiant will give an cash payment of 60 million Norwegian krones (NOK) with an additional carry of up to NOK 200 million of Rocksource's exploration costs on its retained interests. A 78 per cent tax refund on this fugure will go to Valiant in the year following the sale.

Through an Asset Purchase Agreement, Valiant will acquire a number of assets, including a stake in 12 licences, including a stake in a gas field discovery in the Barents Sea.

The licences are held in a number of areas, including the Barents Sea, the Norwegian North Sea and Mid Norway. Through this, Valiant will gain access to a 13 per cent stake in the Norvarg gas discovery and three Norwegian Continental Shelf wells to be drilled in 2013. The drilling will include one well on the Norvarg field, which is estimated to hold between 60 and 300 million barrels of oil equivalent (mmboe).

Valiant said it was pleased to increase its presence into Norway and was looking forward to expanding on the Norwegian Continental Shelf.

"Norway represents an exciting opportunity for Valiant, and we are delighted to be able to build so soon upon the platform created by our strategic acquisition of Sagex last summer," CEO of Valiant Peter Buchanan said.

"The transaction with Rocksource gives us access to a range of exciting acreage with excellent operators and a meaningful stake in the potentially large Norvarg gas discovery. We look forward to working together with our new partners and further deploying Valiant's expertise on the NCS."