Sterling extends grip on Cladhan

Valiant Exploration has agreed to farm-down and swap part of its 100% interests in UK North Sea blocks 210/29c and 210/30b.

Offshore staff

WOKING, UK -- Valiant Exploration has agreed to farm-down and swap part of its 100% interests in UK North Sea blocks 210/29c and 210/30b. These contain the Cladhan South prospect, and are directly south and east of the Sterling Resources-operated Cladhan.

Valiant has agreed three separate transactions with Sterling Resources (UK), Wintershall (UK North Sea), and Agora Oil and Gas (UK).

These will leave Valiant with a 30% stake in Cladhan South, promoted for the full cost of an initial exploration well, and subject to an agreed cap on the promoted costs; and a 40.0% interest in blocks 21/30f and 22/26c in the UK central North Sea, both operated by Sterling and containing numerous exploration and appraisal prospects.

Assuming UK government approval, Sterling will become operator of Cladhan South. Further appraisal is under way on Cladhan, which should also provide information regarding Cladhan South’s prospectivity.

Currently Sterling is seeking a rig slot for the second half of 2011 to drill Cladhan South.

03/16/2011

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