OSLO, Norway – Rocksource has signed a strategic asset transaction with Valiant Petroleum Norge.
The includes the sale of a 13% interest in theNorvarg discovery to Valiant, leaving Rocksource with a 7% stake, and an average reduction of around 50% in Rocksource’s equity in a further 12 exploration licenses. Norvarg, operated by Total, has reserves estimated at between 60 and 300 MMboe.
Valiant will pay $10.4 million in cash and carry Rocksource for more than $35 million in exploration costs on its remaining license interests on the Norwegian continental shelf (NCS). The Woking, UK-based company entered the Norwegian sector last year by acquiring Sagex Petroleum, and was also awarded its first operated Norwegian license under Norway’s recent APA 2011 Round.
Rocksource CEO Chris Spencer said: “We are pleased to have completed this agreement with Valiant, which resolves our short- to medium-term financial constraints, while at the same time retaining material upside from our NCS portfolio. Following recent months with extensive strategic reviews, we are convinced that this is the best solution for our shareholders, creating a strong foundation on which to re-establish Rocksource as an active explorer on the NCS.”
Currently Rocksource is drawing up a drilling campaign for 2013, targeting a minimum of three NCS wells. The company has interests in 14 Norwegian licenses in the North Sea, Norwegian Sea, and Barents Sea.
The transaction remains subject to conditions, including Norwegian government approvals.