VALIANT - North Sea Tybalt Prospect (License 1632)

Project Status:

Tybalt is an Upper Jurassic Magnus sandstone prospect in PL 1632 which has four way dip closure, further enhanced by a stratigraphic pinch-out.

As of January 2010, Valiant's 2010 exploration program has begun to take shape following the booking (subject to finalization of contract) of the Diamond Ocean Nomad semisubmersible drilling rig for the Valiant operated Tybalt prospect located in Quad 211 in the UK sector of the North Sea.

If successful, Tybalt would support commercialization of a joint development with the nearby Banquo field (Valiant, 100.0%) which has audited best estimate contingent resources of 21 mmboe.

Valiant has also issued a Letter of Intent for an agreement to contract a rig slot to drill its large, Central North Sea Viola prospect during the summer of 2010. Further details on Viola as well as Valiant's other key exploration prospects Ariel and Handcross will be provided in due course and the Company anticipates providing a full update alongside of its preliminary results which are due for release at the beginning of Q2 2010.

As of March 2010, Valiant's 2010 exploration program is anticipated to begin shortly with Diamond Offshore's Ocean Nomad semi-submersible drilling rig slated to arrive at the Valiant-operated Tybalt prospect at the beginning of April 2010.

As of 20th March 2010, Valiant has agreed a farmout between VEL and Agora Oil & Gas (UK) for the Tybalt Prospect (License P1632, Blocks 211/8c and 211/13c).

As of April 2010, Valiant Petroleum, an oil and gas company focused on exploration and production within the UK Continental Shelf, has commenced drilling of its operated Tybalt exploration well (License P1632, Blocks 211/8c and 211/13c).

As of 18th April 2010, Agora has agreed to assume 20% of Valiant Petroleum's equity in P1632 (Northern North Sea, Blocks 211/8c and 211/13c), securing participation in the ongoing drilling operation to test the Tybalt Prospect. The well on the Tybalt Prospect was spudded April 13. The P1430 agreement is subject to UK Government approval.

As of May 2010, Valiant Petroleum has announced that its operated Tybalt exploration well 211/8c-4 (Licence P1632) has discovered hydrocarbons in the targeted Upper Magnus Sand Formation within the eastern 'T2' pinch-out prospect (East Tybalt) having intersected a gross oil column of 278 feet (c.85 metres).

Net pay over the section drilled remains to be determined and Valiant is currently running an extensive data collection programme having cored the reservoir and running extensive suite of wireline logs, fluid sampling, pressure readings and a vertical seismic profile. Once all of the data has been analysed and the reservoir is better understood, the net pay has the potential to increase in this part of the field.

Following the success in East Tybalt, Valiant will now undertake to drill its planned sidetrack targeting the four-way dip 'T1' structure (the West Tybalt Prospect) immediately to the west of the current well. Based on the extensive offset well data in the area, the reservoir properties are expected to improve in this well location. Results are expected from this well in the beginning of June. 

Valiant is also reviewing a number of additional appraisal options around East and West Tybalt, including an additional sidetrack and a drill stem test, in order to fully understand the regional reservoir properties to potentially facilitate the near term development of the area.(Topco)