Valiant Petroleum (LON:VPP) shares advanced around 8 per cent this morning as it confirmed the company might be sold.
After building a ‘stable production foundation’ (around 7,500 barrels per day) and an attractive portfolio of development and exploration projects, the North Sea oil firm is now reviewing its strategic options.
The company explained that its options may involve deals at project level like a farm-out or a disposal of assets.
It will also consider options at a corporate level, either a merger or the sale of the entire company. And as such it has now entered a ‘formal sales process’ as defined by the City takeover rules.
Chief executive Peter Buchanan 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."
It has already been a very eventful year of merger and acquisition activity in the North Sea oil sector – with AIM quoted firms like EnCore and Nautical being snapped up by larger rivals.
And another company putting itself up for sale this week was Lochard Energy, which owns a stake in the Ithaca operated Athena oilfield.
After rising nearly 10 per cent in early deals, at 10:00 on AIM Valiant shares were up 21p, or 4.5 per cent, trading at 481p each.