Valiant Commences Phase II of Don Development

The John Shaw semisub has arrived at the Don Southwest field to begin drilling operations for phase two of field development. This phase will be targeting reserves in the Horst compartment in the northern area of the field located between Areas 5 and 6. Field development includes drilling a production well and then a water injection well to deliver pressure support into the compartment. Drilling should be completed during the third quarter of 2010.

The semisub will then drill an appraisal well into the H compartment of Don Southwest, and potentially a third production well on the West Don field, subject to final partner agreement. Don Southwest is located on UK Block 211/18a, roughly 6 miles (9.5 kilometers) away from the UK/Norway median line. The field is 60% owned by Petrofac and serves as operator; Valiant owns the remaining 40% interest.

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