Along with its interest in the Causeway Field, Valiant anticipates acquiring up to GBP37m of potential UK tax losses held in Antrim Causeway associated with historic capital spend to the 30% working interest. After the transaction is completed, Valiant will hold a 54.5% stake in the Causeway Field.
The completion of the acquisition is subject to various conditions precedent and regulatory consents, including full sanction of the Field Development Plan (FDP) by the field partners and the Department of Energy and Climate Change (DECC).
In the event that development sanction for the Causeway Field is received, Valiant has agreed that it will repay a $21.75m loan note issued by Antrim Causeway in favor of Antrim, to meet the development costs accruing to Antrim’s remaining interest in the field.
Antrim has also agreed to transfer operatorship of the field to Valiant, subject to formal DECC and partner consent under the Joint Operating Agreements governing the field.
Valiant has expressed its intention to continue to progress the work done to date by Antrim and finalize a revised FDP for submission to DECC during 2010 in order to begin pursuing the first phase of the Causeway development to access oil volumes from the East Causeway area.
Peter Buchanan, CEO of Valiant, said: “The acquisition of Antrim Causeway (NI) and assumption of operatorship represents an exciting opportunity for Valiant to expedite the Causeway project.
“The recent reduction in rig and service costs and introduction of the small fields allowance in the most recent UK budget are anticipated to make the Causeway field an attractive near term project for the company.”
