Old Head Of Kinsale Drilling Update
Valhalla Oil and Gas Limited (“Valhalla”) today announces that, following the completion of wireline logging operations, the Island Oil & Gas operated 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 successfully encountered gas-bearing reservoir sands. Preliminary interpretation of the well results indicate the following:
- Reservoir continuity with the gas sands encountered in Well 49/23-1, 3 kilometers to the NE;
- Reservoir permeability in line with Well 49/23-1;
- A gas-water contact within 5 feet of that extrapolated for Well 49/23-1, thereby validating the presence of a 100 foot gross gas column for the Old Head of Kinsale gas field.
Well 49/23-2, which was spudded on 16 May 2007, was drilled to its planned total depth in just 11 days, well ahead of schedule and under budget. The operator will now drill a sidetrack hole (49/23-2z) from the existing 49/23-2 well bore to a point approximately 300 meters to the southeast. The objective is to maximise gas deliverability to ensure that any future gas production from the field can be achieved at the highest possible rates. Testing operations are anticipated to commence on completion of the sidetrack well.
The interests in the Old Head of Kinsale licence are Island Oil & Gas plc 65% and operator, Valhalla Oil and Gas Limited 20% and EnCore Oil plc 15%.