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Valiant Petroleum 1 (low)-5 (high)
Management: 3
Market: 4
Product: 3
Financial strength: 3
TOTAL SCORE: 13/20
While it has increasingly been abandoned by the big names in the oil industry, recent history suggests the North Sea retains an appeal for smaller exploration and production companies. For players of this size the kind of opportunities on offer, while marginal to the majors, are far more attractive.
Private UK firm Valiant Petroleum falls into this category. The group, which is due to start trading on Aim this week, is currently developing four separate fields – the first two of which, West Don and Don South West, already have field development plans submitted to the UK government. It is targeting first output here in the first half of 2009 and, once on stream, production from these Petrofac (PFC)-operated fields is expected to reach in excess of 10,000 barrels of oil a day.
In 2008, Valiant plans to submit field development plans for its other projects, Crawford and Causeway, and to drill three exploration prospects in the northern North Sea.
To date, it has funded its operating activities through the private placement of £63 million with institutional investors and through a $245 million debt facility.
This listing will be conducted alongside a fundraising of around.£40 million, which will giving Valiant a market capitalisation touching £200 million on admission. CEO Peter Buchanan says the money will be used to ‘reach first production on West Don and Don South West, fund our 2008 drilling programme and look at potential acquisition opportunities.’ He adds: ‘Listing is a natural next step for Valiant and will give us access to capital markets in order to continue to achieve our long-term goal of building a balanced asset portfolio in the North Sea.’