North Sea oil and gas group Valiant Petroleum (LON:VPP) has launched a strategic review that may involve a sale or merger of the company.
Valiant has hired Morgan Stanley to assess its options with a view to maximising value for shareholders. It said those options may include a transaction such as a farm into, acquisition or farm down / disposal of existing assets or a merger, acquisition or sale of the business.
Over the past four years, Valiant has developed a stable production foundation, with production volumes of 7,453 barrels of oil per day delivering strong operating cash flows of $222 million in 2011. It also has a development and exploration portfolio in the UK and Norway.
The company has outlined a fully funded programme of production, development and exploration for 2013. As part of the planning for 2014 to 2016, the Board has decided to review the full range of strategic options available to the company to maximise the value generated from the existing asset base and cash generated from production.
Peter Buchanan, the chief executive of Valiant, said: “Valiant has built a strong foundation as a full cycle exploration and production company and as a Board we are keen to ensure we position this business to achieve its complete potential. This is therefore a timely review which we approach with a determination to assess the full range of our strategic options.”
