Commencement of 2007 Drilling Activities
Valhalla Oil and Gas Limited (“Valhalla”) today announces that gas appraisal well 49/23-2 (“Well 49/23-2”) on Exploration Licence 4/05 (the Old Head of Kinsale) in the Celtic Sea, offshore Ireland has been spudded by the operator Island Oil & Gas plc. Well 49/23-2, which is the first of this year’s drilling programme, is being drilled using the Petrolia rig. Island is operator with a 65% interest, Valhalla 20% and Encore Oil and Gas Ltd 15%.
Well 49/23-2 was spudded on 16 May 2007 in a water depth of approximately 290 feet. This is the second well at the Old Head of Kinsale and follows on from the gas discovery well 49/23–1 in 2006, representing the first new gas discovery in the Celtic Sea for 16 years. Subject to a successful result and commercial flow-test of Well 49/23-2, the operator and its partners plan to complete and tie-back both wells to the Kinsale A platform next year with a view to producing first gas in the fourth quarter of 2008.
Following completion of drilling and testing, the rig will move immediately to the nearby Exploration Licence 5/05 (the Schull gas field) where it will drill the Island-operated gas appraisal well 57/2-3, subject to approval of the Irish Minister for Communications, Marine and Natural Resources. Valhalla has a 25% interest in this licence, with Encore having 12.5% and Island 62.5%.