Valiant Petroleum plc: Don Southwest 'E' Panel Discovery

Valiant Petroleum plc ("Valiant") is pleased to announce that its Don Southwest 'E' Panel exploration well (211/18a-S7) has reached total depth of 11,540 TVDSS feet (3,517 metres) and has encountered a hydrocarbon bearing Brent sand formation indicating a gross recoverable accumulation of 5-7 million barrels of oil (2-3 million barrels of oil net to Valiant). The well will now be suspended as a future production well which is anticipated to be brought on-stream in the second half of 2011, representing incremental volumes on current 2011 production guidance.
Following its success on the 'E' Panel, the field partners have decided to drill a low cost pilot-hole into Area 26 to appraise the commerciality of the 211/18a-26 discovery originally drilled in 2007. Following completion of the Area 26 well, drilling will commence on the Don Southwest Area 6 development which is anticipated to come on-stream during the summer of 2011.
Average production rates net to Valiant for 2010 were in excess of 7,400 barrels of oil per day representing the upper end of production guidance and current production rates, oil prices and operating cash flow are running ahead of internal forecasts.
Peter Buchanan, CEO, commented:
"We are pleased to announce the discovery of the Don Southwest 'E' Panel, the first exploration well of our 2011 drilling campaign. This result confirms our long-held belief that the Don Area contains upside potential which can be rapidly commercialised through the existing infrastructure. We look forward to working together with our partners in the Don Area to prove-up further volumes in 2011 and beyond."
In accordance with the AIM Rules, the information in this announcement has been reviewed and signed off by Phil Crookall, Technical Director, who has over 20 years relevant experience within the sector.
Source: Press release