2011-06-17-2011-05-27

To buy company with North Sea assets in Norway, the U.K. & Faroe Islands.

Valiant Petroleum Plc, London, (London: VPP) plans to acquire privately held, Oslo, Norway-based Sagex Petroleum ASA for US$11.68 million (£7.1 million) in cash and stock.

Valiant will offer 998,985 shares and approximately US$2.96 million (£1.8 million) in cash to Sagex shareholders.

Sagex has assets in Norway, the U.K. and Faroe Islands with a focus on the Norwegian Continental Shelf and the Atlantic Margin. The key assets include10% interest in the Causeway development (with proved and probable reserves of 600,000 barrels of oil, various licenses in the Barents Sea and Mid Norway and 100% interest in L 013 and 014 in the Faroe Islands.

Sagex is committed to drilling two exploration wells during 2011, being the Chamonix and Cortina stacked prospects (PL 471) in Mid Norway (20% interest), anticipated to spud during the summer, and the Zapffe prospect (PL 518) in the Barents Sea during the fourth quarter (10% interest).

Production is forecast to be 7,500 to 8,500 barrels of oil per day by year-end. Pro forma proved and probable reserves are expected to be 26 million barrels of oil equivalent. Also, Valiant will have a consolidated interest in the Causeway development of up to 64.5%, with commencement of oil production anticipated during 2012.

Arctic Securities is financial advisor to Valiant. Schjødt and McGrigors are legal advisors to Valiant.