Valiant Petroleum said today it had signed a farm-out agreement with Agora Oil and Gas (UK) on its Tybalt prospect in the northern North Sea.
The deal will see Agora, which Edinburgh-based oil firm Cairn Energy is in the process of buying, double its stake in Tybalt from 20% to 40% in return for paying some of the undisclosed costs of the well.
Valiant will remain operator and have 60% interest in the field, which is currently subject of an appraisal well using the Borgsten Dolphin semi-submersible rig. Results of the drilling are expected in May.
Cairn’s planned takeover of Agora, announced last month, was valued at about £280million.
Tybalt is one of a string of six exploration and two development wells being drilled by Valiant this year.
Other wells it is due to drill include Handcross, west of Shetland, which is 90%-owned by Valiant and has best estimate gross prospective resources of 180million barrels of oil equivalent.
Valiant will also be involved in drilling on the Timon prospect after buying a 10% share off Agora, Orchid, Cladhan South – due to be drilled in the first half of the year – and the Apache-operated northern North Sea Tryfan prospect.