UK: Valiant Announces Positive Tybalt Drill Stem Test Results

Valiant Petroleum plc (“Valiant”) announced the second Tybalt exploration well (211/8c-4Z) has been successfully tested, delivering a post clean-up peak rate of 5,400 barrels of oil per day (“bopd”) and 4 million standard cubic feet of gas per day (“mmscfd”) on a 56/64″ choke representing a combined rate in excess of 6,000 barrels of oil equivalent per day (“boepd”).

The well was subsequently choked back to 52/64” and delivered a stabilised average rate of 4,600 bopd and 3.3 mmscfd (5,150 boepd) over an 11 hour flow period. Oil samples taken during the test confirm a light crude with an API of 38-40 degrees. The flow rates achieved were in-line with pre-test expectations.

Valiant has started to integrate the extensive dataset collected on Tybalt, including the well test and pressure data, into a detailed geological and reservoir model which is now based on a stratigraphic trapping mechanism. Valiant’s updated understanding now suggests that the current well was not ideally placed in order to evaluate the full extent of the discovery.

Technical evaluation will now focus on defining the extent and nature of the Upper Magnus reservoir in the area in order to indentify the location for the appraisal drilling program which Valiant intends to pursue in the next twelve months.

The well will now be suspended for potential use as a future appraisal or development well.

Valiant Exploration Limited, a wholly owned subsidiary of Valiant, acts as operator of the blocks with 80% working interest with the remaining 20% held by Agora Oil & Gas (UK) Limited.

Peter Buchanan, Valiant’s CEO, commented:

“Valiant’s success on Tybalt over the past month has been a welcome start to our 2010 exploration drilling program. In the short term we will focus our attention on understanding the extent of the discovery in order to fully appraise the potential on the block.”

In accordance with the AIM Rules, the information in this announcement has been reviewed and signed off by Phil Crookall, Technical Director, who has over 20 years relevant experience within the sector.


Source: ValiantPetroleum, June 17, 2010