Valiant Petroleum Signs Agreement with RWE Dea
Valiant Petroleum has signed a farm-out agreement with RWE Dea UK SNS Limited (“RWE Dea”) with regard to its Handcross prospect located in the UK West of Shetland Licences P1631 Block 204/18b and P1832 Blocks 204/14c and 204/19c (“Handcross”).
Under the terms of the agreement, RWE Dea will acquire a 20% working interest on a materially promoted basis subject to a cap on well costs. Following completion, Valiant’s working interest in the Handcross exploration well will reduce to 70% (currently 90%). The transaction remains subject to DECC consent.
Handcross is a large, Palaeocene channelized fan prospect defined on 3D seismic by clear far offset amplitude and AVO responses. The prospect is located close to the Suilven and Tornado discoveries and 20 Km from BP’s Quad 204 redevelopment. As previously announced, a firm slot on Stena Carron drillship has been contracted to drill the well which is currently anticipated to spud during Q4 2013.
Following completion of the transaction, the Handcross partners will be Valiant (70%, operator), RWE Dea (20%) and Sussex Energy Limited (10%).
Press Release, March 29, 2013