Valkyries Petroleum Makes Texas Discoveries

Valkyries Petroleum announces testing results on its two new discoveries in the South Texas play. The Diamond discovery well tested gas at a rate of 612 thousand cubic feet per day with no water from 12 feet of perforations in the Pettus sands at a depth of 4,518 feet using a 10/64th inch choke. Petrophysical analysis of the electrical logs in this section shows porosities of between 30 and 40 percent. Operations are underway to construct a tie-in pipeline and production is expected to commence in early March.

The Ruby discovery well reached a total depth of 5,300 feet on January 28, 2005. The well encountered a 23 foot section of oil saturated Pettus sands with average porosity of 30 percent. The well tested 168 barrels of oil per day, 60 thousand cubic feet of gas per day with no water from a 10/64th inch choke. Facility preparations are underway to immediately put this well on production and follow-up appraisal wells are being considered.

The Company has a 31.875% working interest in both of these wells.

Valkyries President and CEO Keith Hill stated, "This represents the fourth straight exploration success in our South Texas play and is a testament to the strong technical skills of Alta Resources, our operating partner. We look forward to continuing this relationship and expanding our U.S. interests."