Company Business

Valiant Petroleum plc (“Valiant” or the “Company”) is an independent oil & gas company formed in 2004 with a strategy of building a portfolio of development, appraisal and low risk exploration assets in the UK North Sea.

Valiant’s focus to date has been to build a core position in the northern North Sea – an area which its Directors believe has previously been under-exploited compared with other areas of the North Sea. This is largely due to the fact that the northern North Sea, home to some of the largest oil fields in the North Sea (e.g. Statfjord, Brent, Magnus), was under the control of a few major oil companies for whom smaller and medium sized fields were not considered material to their business.

Valiant believes that the North Sea contains significant remaining hydrocarbon resources and that even small-to-medium new field discoveries can be quickly and profitably developed utilising extensive existing infrastructure.

Through a combination of acquisitions, participation in licensing rounds and appraisal drilling, Valiant has created a portfolio of short and medium term development projects (West Don, Don South West, Crawford and Causeway) and a number of near-term exploration prospects which the Company plans to drill during the next 12 months. During 2007, Valiant participated in six wells (all of which discovered hydrocarbons) and anticipates this level of drilling activity to continue in the medium term.

According to a Competent Person's Report prepared by RPS Energy, Valiant had net proved and probable reserves ("2P") of 23.1 MMstb and 15.8 MMstb of Contingent Resources as at 31 December 2007. Valiant anticipates achieving first production during the first half of 2009 from the West Don and Don South West developments – both of which are operated by Petrofac Energy Developments (part of the Petrofac Group).

On 13 March 2008 Valiant successfully listed on the AIM market of the London Stock Exchange under the ticker symbol VPP. Prior to this point, the Company had raised approximately £63 million in equity capital as a private entity and entered into debt facilities totalling US$245 million.

Valiant has assembled a highly experienced team with a significant depth of technical expertise and experience of working in the North Sea. This is complemented by a strong financial and transactional knowledge of the oil and gas sector gained in various companies and jurisdictions. The team members have also over the years developed a broad and effective network of relationships with other oil companies and regulatory bodies. Valiant currently employs 16 people and is continually looking to add additional human resources where appropriate.