Offshore staff

WOKING, UK – Valiant Petroleum plans to participate in up to six wells this year on the UK continental shelf.

The company expects the semisub Sedco 711 will arrive in mid-February to drill the Orchid prospect in central North Sea 29/1c.

Orchid is a dual-target, four-way dip closure at Tertiary and Chalk level with prospective resources of 30 MMboe.

Recently Valiant agreed to acquire a 10% stake from Agora Oil & Gas in northern North Sea blocks 211/11b and 211/16b.

In return, Valiant will pay part of the cost of an exploration well on Timon, an Upper Jurassic channelized sand play structure thought to be similar to the Cladhan and Tybalt discoveries.

The semisub Wilhunter should spud the well this quarter, with resources again estimated at 30 MMboe.

As part of the Causeway development campaign in the same sector, Valiant has secured an additional slot on the semisub Borgsten Dolphin which will likely be used to appraise the Tybalt discovery.

The potential program, which would include a contingent test, is designed to prove up commercial volumes. Valiant’s best estimate of prospective resources here is 7 MMbbl from this campaign, excluding associated gas, with further upside from future appraisal activity in the event of a success.

Sterling Resources has a letter of intent has been issued to use the semisub Sedco 704 to drill the Cladhan South prospect (Valiant 30%) in the first half of the year.

This is an upper Jurassic channelized sand play immediately south of the Cladhan discovery, with prospective resources of 13 Mmboe. Valiant’s cost is carried through the initial well (subject to an agreed cap).

Apache is looking for a rig to drill the Tryfan prospect (Valiant, 33.33%), also in the northern sector in mid-2012. Tryfan is an Eocene stratigraphic channel-sand play benefiting from a fluid characterized, seismic amplitude response with resources estimated at 24 MMboe.

Finally, Valiant is looking for a deepwater rig to drill a potentially high-impact well on the 180-MMboe Handcross prospect west of Shetlands.

However, a tight global deepwater rig market has set back exploration drilling in this region, so the company has started discussions with other operators to look at ways of attracting an additional rig to the area.

Valiant may also seek further exploration opportunities offshore Norway.

01/11/2012