Press release – 6 April 2010
VALHALLA OIL AND GAS LIMITED
Operational Update – Hykeham 1 Well - UK Onshore Licence PEDL 150 – East Midlands
Valhalla Oil and Gas Limited wishes to provide an update on operations at the Hykeham-1 well. The licence operator is Europa Oil & Gas (Holdings) plc having a 75% working interest, with Valhalla holding a 25% working interest.
The well has been re-perforated and a pump installed to lift the well. To date, the well has produced only small volumes of liquid and some gas. This result is completely incompatible with both the wireline log and geological data from the well. The well will be shut-in until the analysis is complete and a decision is made on the forward programme. If this analysis concludes that remedial action is not appropriate, the well will be abandoned.
Paul Barrett, Managing Director of the operator, has stated, `I have experience of many wells over several decades and never seen such a mismatch between the test data and the geological data for the reservoir. We believe that this reservoir is oil-bearing and will flow given the right completion conditions and will be working to achieve this over the coming months.'