SURREY, UK -- Valiant Petroleum has signed a letter of intent to sign a sale and purchase agreement with Nor Energy AS to acquire Nor Energy (UK). The agreement includes a 10.50% interest in license P.201, block 211/22a SE and license P.1383, and block 211/23d containing the Causeway field.
Valiant has agreed to discharge a $3-million loan between Nor UK and Nor at completion of the acquisition and to pay a further $2-million deferred, contingent consideration after the Causeway field has achieved first oil. Following completion of the transaction, Valiant will hold a 24.50% stake in the Causeway field.
The field development plan for Phase I of the Causeway field was submitted in December 2008 by the operator, Antrim Energy Inc. Phase I is forecast to initially produce 15,000 b/d of oil, accessing approximately 7.3 MMbbl of oil (gross) from the East Causeway area. Subsequent phases are anticipated to access additional reserves in the central and western areas of the Causeway field. Approval of the FDP is anticipated this year.
Completion of the transaction is subject to various conditions precedent, including completion of the pending transfer of the Causeway field between Nor and Nor UK and all requisite regulatory consents.