VALIANT Petroleum said yesterday the next 18 months had the potential to create a “step change” for the business as it announced strong first-half results.
The oil and gas firm said it had edged closer to its first operatorship of a field, with the submission of a development plan for Causeway in the northern North Sea.
First oil from the field – estimated to have reserves of 6.6million barrels – is expected in mid-2012, subject to approval of the plan by the Department of Energy and Climate Change by the end of this year.
Valiant’s exploration programme includes at least five wells in the UK, Norway and, significantly, the Barents Sea, over the next 18 months after the purchase of Norwegian firm Sagex for £7.1million gave it entry into Norway and Faroe.
This includes the high-impact Zapffe prospect in the Barents, due to spud in the fourth quarter.
The company’s first-half results were boosted by high oil prices and “robust production” in the northern North Sea, it said.
Exploration success on Don Southwest, 40% owned by Valiant, in the northern North sea and recent acquisition of Sagex, had also helped to put the firm in a position of considerable financial strength.
Chief executive Peter Buchanan said: “During the first half of 2011, Valiant made significant progress in five distinct areas: production growth, exploration success, asset and portfolio development, and corporate acquisition.
“For the second half, we are engaged on three exploration wells and are pressing ahead with our first field development, Causeway, as operator.”
Valiant posted revenue of £96million, up from £39million in the same period in 2010. Pre-tax profits increased to £52.3million, from £14.1million previously, on net production of 8,225 barrels of oil per day.
Causeway is 64.5% owned by Valiant after it bought a 30% stake from Antrim Energy, which now owns 35.5%, earlier this year.
Antrim said yesterday export would be via the TAQA-operated Cormorant North platform to Sullom Voe, in Shetland.
It said its share of the development costs would be £19.6million.
French energy service group Technip has been awarded a letter of intent for the project’s main subsea installation contract.