North Sea: Valiant Petroleum Reports Oil Discovery

Valiant Petroleum announced that its operated Tybalt exploration well 211/8c-4 (License P1632) has discovered hydrocarbons in the targeted Upper Magnus Sand Formation within the eastern ‘T2’ pinch-out prospect East Tybalt having intersected a gross oil column of 278 feet (85 meters).

Initial log while drilling data indicates at least 63 feet (19 meters) of reservoir, which is lower than assumed in pre-drill estimates at this location. Net pay over the section drilled remains to be determined, and Valiant is currently running an extensive data collection program having cored the reservoir and running extensive suite of wireline logs, fluid sampling, pressure readings and a vertical seismic profile. Once all of the data has been analyzed and the reservoir is better understood, the net pay has the potential to increase in this part of the field.

Following the success in East Tybalt, Valiant will now undertake to drill its planned sidetrack targeting the four-way dip ‘T1’ structure (the West Tybalt prospect) immediately to the west of the current well. Based on the extensive offset well data in the area, the reservoir properties are expected to improve in this well location. Results are expected from this well in the beginning of June.

Valiant is also reviewing a number of additional appraisal options around East and West Tybalt, including an additional sidetrack and a drill stem test, in order to fully understand the regional reservoir properties to potentially facilitate the near term development of the area.

Valiant act as operator of the blocks with 80% working interest with the remaining 20% held by Agora Oil & Gas (UK) Limited. Tybalt is located on the UK Continental Shelf of the North Sea on block 211/8c of license P1632.

“In the event of further success in the West Tybalt side-track well, Valiant believes that sufficient hydrocarbon volumes will have been identified to proceed with a development either on its own or alongside the development / re-development of the other fields in the area including the nearby Valiant-operated Banquo and Helena discoveries,” Peter Buchanan, Valiant’s CEO, commented.

Development Options

Considerable synergies exist to jointly develop Tybalt alongside the nearby Banquo and Helena discoveries. The key development concept is a subsea tie-back to local host infrastructure (such as Magnus, the Don fields, Thistle or through the Penguin facilities), which could allow first oil as early as 2011.

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Source: Valiantpetroleum, May 11, 2010;