Don SW Appraisal Well Suspends Development Drilling in UK North Sea

Valiant Petroleumís appraisal well on Don SW has been suspended and will be sidetracked in Q2 2008 following analysis of the drilling results.

Three reservoir intervals were penetrated in the well including the upper Brent section, the Statfjord and the Cormorant. All three reservoirs have been confirmed by wireline logs to be oil bearing. The Brent appears to be in pressure communication with the main Don SW field.

However, the middle and lower Brent reservoir is missing in the well and early indication suggest the well penetrated a fault. A sidetrack will be drilled to fully test the entire Brent sequence at this location when more confidence has been gained on the geometry of the fault.

In addition, the John Shaw drilling rig has been contracted to drill the development wells on Don SW commencing in April 2008. This will enable production to commence in 2009.

Commenting on the well results, CEO Peter Buchanan said, "The appraisal well has confirmed the extension of the Don SW field to the west of the main field and has proven up a potential new reservoir system in the Statfjord and Cormorant sands. These results give us more confidence about the further extension of the field into neighbouring compartments that remain as yet untested. We will be seeking to further appraise the upside in the area during the course of next year. We now look forward to working with Petrofac, the field operator to bring the field on stream as soon as possible."


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