Valiant Reports on Rig Intervention at Don Southwest Field

West Don, Don Southwest Fields
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Valiant Petroleum has provided an update on the current rig intervention on the Area 22 well in the Petrofac-operated Don Southwest field in the Greater Don Area of the UK North Sea.

As previously identified, the horizontal production well drilled into Area 22 located in the south of the field failed to flow significant amounts of oil and a well intervention program was undertaken as planned at the end of the Don Southwest drilling campaign.

Following this intervention, the Area 22 well flowed; however, weather and mechanical problems on the rig resulted in the test period being curtailed. Based on the information gathered during the test period, the view of Valiant and the operator, Petrofac Energy Developments Limited, is that the well has been drilled in and along the main northern bounding fault to the Area 22 compartment which may lead to oil flow problems over time.

A decision has therefore been made to drill a side-track to the south of the current location away from the main fault zone to ensure maximum productivity from the well. The side-track operation is likely to last around 45 days subject to weather. An updated reserve and resource position incorporating all of the information gathered on the Field to date including the Area 22 side-track, newly discovered 'Horst' block in the north of the field and the 'H' Panel discovery in the south of the Field will be published in due course following Valiant's annual year-end review.

The side-track operation also means that due to physical logistics on the field, water injection to Don Southwest will not be switched on until the rig has moved off location. As a consequence, Valiant will provide a full trading update, including 2010 production guidance and drilling campaign, upon completion of the current work program expected in early January.


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