Investor Relations

• 05/06/2009 Celtic Sea Gas Assets - Operational Update
• 29/01/2009 Operational Update – Spudding of Hykeham-1 well – PEDL 150
• 26/10/2009 Operational Update – UK Onshore Licence PEDL 150 – East Midlands – Hykeham 1
• 04/12/2009 Operational Update – Hykeham 1 Well – UK Onshore Licence PEDL 150 – East Midlands
• 06/04/2010 Operational Update – Hykeham 1 Well – UK Onshore Licence PEDL 150 – East Midlands

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Successful Schull Gas Well

Valhalla Oil and Gas Limited (“Valhalla” or the “Company”)  is pleased to announce that the Island Oil & Gas plc -operated gas appraisal well 57/2-3 (“Well 57/2-3” or “the Well”) on Exploration Licence 5/05 (the Schull Gas Field) in the Celtic Sea, offshore Ireland has successfully tested dry gas at a rate of  21 million standard cubic feet per day (“mmscfpd”) through a 72/64” restricted choke size, with absolute open flow potential of 40 mmscfpd.  The gas was produced from Upper Wealden reservoirs between 2,332 feet Measured Depth (“MD”) and 2,599 feet MD below the rotary table (“BRT”).

HIGHLIGHTS:

• The well encountered a gross gas column of 292 feet, significantly greater than that prognosed pre-drilling
• Reservoir encountered 84 feet high to prognosis
• Additional, previously untested, reservoirs discovered by the Schull well provide follow-up potential in offset structures on the Schull Licence
• Positive drilling results upgrade the Schull Gas Field to a potential standalone development.

FORWARD PROGRAMME:

Well 57/2-3 is being suspended as a potential gas producer.

Island is now commissioning a commercial and engineering study to determine the optimum development scenario for the Schull , Old Head and West Seven Heads gas fields. It is currently anticipated that this study will include the potential for using at least one of the gas fields as a gas storage facility to allow for an increase in winter gas production at a time when gas prices are traditionally higher. Another option being evaluated is the use of one of the gas fields as a potential, short-term, national strategic gas reserve. The options being investigated are designed to maximize the value of the potential gas reserves and of the additional infrastructure that would be required to develop the gas fields.  These options are subject to the consents and approvals of the Department of Communications, Marine and Natural Resources, in accordance with the normal procedures required.

Valhalla has a 25% interest in the Schull Field, where it is partnered by the operator, Island Oil & Gas plc Limited with a 62.5% interest and EnCore Oil plc with a 12.5% interest.