Valkyries Petroleum recently spud the Alta-Kenedy Foundation No. 1 gas exploration well on it's Mustang Prospect in south Texas. The well is expected to be drilled to a total depth of 9950 feet and will target the prolific Queen City sands which produce nearby at the Mestena Grande field (120 BCFG). The Mustang prospect is the largest in the prospect inventory covering a surface area of 1,200 acres with 20 BCFG of potential reserves (Ryder-Scott, January 15, 2003). The well will be operated on behalf of the partnership by Alta Resources, L.L.C. Valkyries holds a 37.5% working interest.