Sterling Resources, Valiant Petroleum swap North Sea assets

Source: Sterling Resources

Sterling Resources Ltd. (TSXV: SLG) has executed reciprocal agreements with Valiant Petroleum plc (LSX:VPP) to facilitate the exchange of certain North Sea assets. 

The transaction, which is subject to a number of conditions precedent, including the approval of the Department of Energy and Climate Change (DECC), will result in Sterling acquiring a 25 percent interest and operatorship of Blocks 210/29c and 210/30b in the Northern North Sea. In exchange, Valiant will obtain a 40 percent interest in Sterling's Central North Sea licenses in Blocks 21/30f and 22/26c, which have been offered for award to Sterling in the most recent 26th UKCS licensing round. 

Blocks 210/29c and 210/30b are adjacent to Blocks 210/29a and 210/30a in which Sterling as operator has discovered and is currently delineating the Cladhan field. In addition to Sterling (25 percent), and Valiant Exploration Limited (30 percent), the other remaining partners in Blocks 210/29a and 210/30b will be Wintershall UK North Sea Ltd. (25 percent) and Agora Oil and Gas UK Ltd. (20 percent) on completion of the transaction. 

"We are glad to be partnered with Valiant in the Central North Sea licenses which contain a number of exploration and appraisal opportunities which both parties are keen to evaluate," stated Mike Azancot, Sterling's President and CEO. "Increasing our involvement in the greater Cladhan area is of significant importance as we continue to determine the extent of the hydrocarbon potential adjacent to the discovery in our current licenses to the North and West. We are assessing the possibility of drilling a well in a mapped southern channel later this year on the Blocks acquired through this transaction," added Mr. Azancot.

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