Valiant Petroleum plc and its joint venture partners have received approval of the Field Development Plan (FDP) for the Don Southwest and West Don fields (together the "Don Fields") from the UK Department of Business, Enterprise and Regulatory Reform (BERR). Valiant has a 40% interest in Don South West field and a 17.275% interest in the West Don field.

The Don Fields will be jointly developed using the floating production vessel "Northern Producer" with production exported initially via offshore tanker loading, with a permanent pipeline export route completed later in 2009. Development drilling is expected to commence with the semi submersible drilling unit "John Shaw" in the third quarter of 2008. With over 50 million barrels of gross recoverable reserves, peak production rates of the combined Don Fields is expected to reach 50,000 barrels of oil per day and is due to come on stream in the first half of 2009.

Petrofac Energy Developments Limited (operator of both fields) will now move into the project execution phase following substantial planning carried out on the Don Fields to-date.

In addition Valiant is pleased to announce that Bank of Scotland has completed syndication of the US$200m Senior Debt Facility to a number of International Banks. This facility was put in place to part finance Valiant's share of the Don Field Developments.

Valiant's Chief Executive, Peter Buchanan commented, "We are delighted to receive FDP approval for the Don Fields so soon after our AIM admission. The development is one of the largest stand-alone developments in the UK North Sea this year and will give Valiant its first oil production. Approval of the development plan for the Don Fields is an important milestone towards Valiant becoming a full-cycle exploration and production company. We are also pleased to welcome the new banking group which will form the basis of our banking relationships going forward"

Tags: Valiant Petroleum Limited