The company said that it has been approached by a number of major UK operators regarding the farm-in and joint venture opportunities and is engaged in discussions with these operators.
Velo has also received a notice of termination of the CSC agreement under which the company’s wholly owned subsidiary had agreed to buy interests in the Caledonia, Sheryl and Catcher areas in the UK North Sea. The CSC agreement had been conditional upon Velo completing its financing on or before January 31, 2010 and other conditions, including DECC consent to the transfers of interests.
The vendor also formally advised Velo that it is prepared to enter into another agreement under which Velo’s subsidiary may acquire the interests in the Caledonia and Sheryl (but not Catcher) areas on the same terms. Velo is considering its position on the matter, particularly in light of the recent communication with DECC.
