Apache farms into Viola North well

Offshore staff

WOKING, UK -- Valiant Exploration Ltd (VEL) is bringing in two partners to co-fund drilling of various prospects in the UK North Sea.

VEL has agreed a farm-out with Apache North Sea concerning the Viola North prospect in UK North Sea license P1629, block 30/18b. Under the terms of the arrangement, Apache will gain a 50% stake in the prospect in exchange for paying 75% of the costs of a well, expected to be drilled this summer.

Apache will also participate in a second exploration well (likely on the Viola South prospect) on the same terms, subject to approvals. Should the partners opt to pursue a development, Apache will become operator.

VEL has agreed another further farm-out with Agora Oil & Gas (UK) on theTybalt prospect in UK license P1632, blocks 211/8c and 211/13c. Valiant's costs of an imminent well, to be drilled by the DiamondOcean Nomad semi, will be part-carried by Agora in exchange or a 20% stake in the prospect, subject to a cap on the promoted costs.

Following the farm-out, Valiant will remain as operator on the blocks and retain an 80% working interest. Agora will have a further option to participate in drilling of a planned appraisal well on the nearby Banquo discovery in license P.212, Block 211/8a, and an exploration well on the Helena prospect in License P.296, block 211/13a on the same terms.

04/05/2010