A ruled residue theorem for function fields of conics

The ruled residue theorem characterises residue field extensions for valuations on a rational function field. Under the assumption that the characteristic of the residue field is different from $2$ this theorem is extended here to function fields of conics. The main result is that there is at most one extension of a valuation from on the base field to the function field of a conic for which the residue field extension is transcendental but not ruled. Furthermore the situation when this valuation is present is characterised.