Valiant Petroleum Profits Soar At $85.4 Million

Valiant Petroleum plc today announced its interim financial results for the period to 30 June 2011.

Financial Highlights

• Revenue of $156.7 million (H1 2010 $64.5 million) and operating cash flow of $137.0 million (H1 2010 $44.8 million) based on an average realised price of $107/bbl (H1 2010 $79)
• Profit before tax for H1 2011 increased substantially to $85.4 million (H1 2010: $23.1 million)
• Strong cash generation - net debt reduced in the period by $77.5 million to $1.9 million - undrawn loan facility headroom of $217 million

Operational Highlights

• First half average net production of 8,225 barrels of oil per day ("bopd"), slightly ahead of expectations
• Completion of the Don Southwest Area 6 development with first oil achieved in early August
• Discovery of Conrie (previously Don Southwest Area E) and fast-track development with first oil achieved in mid August
• Active exploration portfolio management including a farm-in to the Orchid prospect (Valiant, 30%) which is anticipated to spud in Q4 2011 and farm-out/swap of Cladhan South (Valiant, 30%) including an equity interest in two Central North Sea blocks
• Announced acquisition of Sagex Petroleum ASA, a Norwegian-focused exploration company with completion occurring immediately after period end
• Board sanction for Causeway development (Valiant, 64.5%) immediately after period end, targeting first oil in H2 2012

Outlook

• Production guidance range for 2011 remains unchanged (7,500 to 8,500 bopd)
• At least three exploration wells drilling during H2 2011 (Chamonix/Cortina, Orchid, Zapffe)
• Progressing execution of the Causeway project development, Valiant's first as operator
• Fully integrate Norwegian operations and continue to build our Norwegian presence
• Increase in committed investment programme following strong H1 performance

Peter Buchanan, CEO, commented: "During the first half of 2011, Valiant made significant progress in five distinct areas: production growth, exploration success, asset and portfolio development, and corporate acquisition. For the second half, we are engaged on three exploration wells and are pressing ahead with our first field development, Causeway, as operator. The strength of the company's financial position allows us to plan for the medium term; each element of our exploration, development and production plans offers the opportunity to achieve material step changes in the value we represent for our shareholders."

For a detailed financial and operational report please visit here.