Valiant Petroleum’s chief executive is considering a takeover bid of the stock market-listed firm, it was revealed yesterday.
Peter Buchanan, who founded the North Sea-focused oil and gas explorer in 2004, has stepped aside from his role to work on plans for a buyout.
The move follows Valiant announcing in September it was launching a strategic review and sale process with the help of Morgan Stanley. This was to look at options including a farm-out or disposal of assets, a merger or sale.
Shares in Aim-listed Valiant were down 1.8% at 441.3p last night, valuing it at about £180million.
The firm said Michael Bonte-Friedheim had been appointed acting CEO to allow Mr Buchanan to focus on his proposal.
It also said the review process continued and that the board was considering proposals, including “corporate transactions and standalone organic growth alternatives”.
Chairman Kevin Lyon said: “This appointment will allow the board to reach the right conclusion to the process at the earliest possible date, and ensure that our business continues to move forward in the meantime.”
When Valiant announced the strategic review, Mr Buchanan said a merger would help to turn the firm into a strong mid-cap operation. It has exploration acreage in the UK and Norwegian sectors of the North Sea as well as in Faroese waters.
Earlier this week it announced its first operated production after its North Sea Causeway field came on stream. The project would help it reach about 11,500 barrels of oil per day (bpd) in production by the year-end, giving Valiant an average 2012 daily production rate of about 6,500bpd, slightly less than previously anticipated.
In September, the firm said that, over four years, it had developed a stable production foundation, had operating cash flows of £140million in 2011 with a fully funded programme of production, development and exploration for 2013; with much of the exploration planned offshore Norway but including its 90%-owned and operated Handcross prospect west of Shetland using the Stena Carron drillship.
David Barclay, divisional director at Brewin Dolphin in Aberdeen, said: “Valiant is looking after its shareholders with the strategic review. It is right to invite and consider all options available to it, and to explore any avenues which allow it to most efficiently deploy capital.”