Valiant Petroleum said yesterday that 2009 had been a transformational year for it as it swung into profit following the start of production from fields north-east of Shetland.
First oil was achieved last April from West Don (Valiant 17.275%) and in July from Don Southwest (Valiant 40%), both of which are operated by Petrofac.
UK-listed Valiant said it had also participated in two successful appraisal wells on Don Southwest and completed the acquisition of an additional 10.5% stake in the Causeway field and the remaining 50% stake in the Banquo and Helena undeveloped discoveries.
It said it had net production during the year of 794,500 barrels of oil and at the year-end had proved plus probable reserves of 27million barrels of oil equivalent (boe).
Valiant said its objectives for 2010 were to complete the second phase of the development of the Don fields and continue to progress exploration and appraisal opportunities in and around the area.
It added that it would seek to drill at least two material exploration wells in its current portfolio, submit a development plan for the Crawford field, assume operatorship of Causeway and submit a revised field-development plan. It also said it would aim to build on its acreage through participation in the 26th UK offshore licensing round and would pursue acquisition and consolidation opportunities.
Valiant gave production guidance for 2010 of 6,500-7,500 barrels of oil per day.
Chief executive Peter Buchanan said: “Despite the challenging economic environment, the group has delivered substantially against its targets for the year.
“Valiant has achieved its initial objective of becoming a full-cycle exploration and production business focused on the UK continental shelf.
“We are very excited by the prospects for 2010 and beyond as the group moves other developments towards production and drills several high-impact exploration wells, including Tybalt and Viola, which have both been successfully farmed out.”
Valiant said yesterday the Viola prospect had been farmed out to Apache North Sea, which would pay 75% of an exploration well cost in return for a 50% stake, while Agora Oil and Gas would gain 20% of Tybalt for partly carrying the cost of a Valiant exploration well.
The company added that success with Tybalt would enhance the chances of a joint development with the nearby Banquo and Helena discoveries to give Valiant its first major operated development.
It reported pre-tax profits for 2009 of £6.95million compared with losses of £64.25million the year before. Revenue for the year from sales of oil came in at £35.6million compared with nil the previous year.
Iraq, BP and its Chinese partner, CNPC, has awarded about £325million of drilling contracts to develop the giant Rumaila oil field, according to a report yesterday.
Chinese firm Daqing and a joint venture between Schlumberger and state-owned Iraq Drilling Company were each awarded 21-well contracts and Weatherford International gained a seven-well deal.
A further seven wells are to be contracted later.
Rumaila, with about 17billion barrels of reserves, produces 1.25million barrels per day (bpd), however, BP and CNPC aim to increase output to 2.85million bpd.