Press release – 4 December 2009
VALHALLA OIL AND GAS LIMITED
Operational Update – Hykeham 1 Well - UK Onshore Licence PEDL 150 – East Midlands
Valhalla Oil and Gas Limited is pleased to announce that the Hykeham-1 exploration well has reached a final total depth of 1,110m in a sidetracked wellbore, having encountered encouraging oil shows from 18m gross thickness of Basal Sandstone reservoir. The licence operator is Europa Oil & Gas (Holdings) plc having a 75% working interest, with Valhalla holding a 25% working interest.
The operator has stated that “Live oil was encountered at the shakers during drilling and on the drillstring during preparations for logging. Wireline log analysis indicates that approximately 4m net thickness of Basal Sandstone is oil-bearing and the well will be completed in preparation for production testing. The Basal Sandstone unit calculating as oil pay is directly analogous to the producing interval in the nearby Whisby Field, which has produced some 700,000 barrels of oil to date.
The forward programme is to run and cement casing, then demobilise the drilling unit. Following installation of temporary production equipment, the zone will be perforated and an extended well test performed. This is expected to commence in January.”