Valiant Petroleum subsidiary signs farm-out agreement with Maersk

Valiant Causeway, the wholly owned subsidiary of AIM-listed oil and gas exploration company Valiant Petroleum, has signed a farm-out agreement with Maersk Oil North Sea UK for its Isabella prospect located in the UK Central North.

Under the terms of the agreement, Valiant's well costs will be partially carried by Maersk Oil UK subject to a cap on the promoted costs.

Maersk Oil UK will also refund to Valiant certain historic costs associated with the licence at its working interest.

Following completion, Valiant's stake will reduce to 20% from its current 50% interest. The transaction remains subject to Department of Energy and Climate Change consent.

Isabella is a gas condensate prospect located on one of the largest undrilled fault blocks in the UK Central North Sea with prospectivity across multiple geological horizons.

Following completion of the transaction, the P1820 partners will be Apache North Sea, Maersk Oil North Sea and Valiant Causeway.

Valiant Petroleum's share price was up 0.22% to 461p at 09:28 on Friday.

MF