Valkyries Petroleum Makes Gas Discovery

Valkyries Petroleum has been successful at its Diamond prospect well in South Texas. The well encountered Pettus sands at a depth of 4,518 feet which is 36 feet updip of an offset well. Petrophysical analysis of the electrical logs indicates net gas pay of 12 feet with porosities between 30 and 40 percent. The well is currently being completed as a producer and will be tied into the gas pipeline network by mid-February. The Company has a 37.5% working interest in this well.

Valkyries President and CEO Keith Hill stated, "It is quite encouraging that the first well in our 2005 U.S. drilling program has proven successful. This represents the third discovery in four wells in our South Texas play."