Valiant says that its planned side-track in the operated Tybalt exploration well 211/8c-4z (License P1632) has discovered light oil in the four-way dip 'T1' structure (the "West Tybalt" prospect). This further discovery follows the success in East Tybalt announced on April 13, 2010.

The well encountered an oil bearing reservoir section in the Upper Magnus sands of approximately 550 ft (168 m). This was larger than pre-drill estimates, and pressure data collected imply up to three separate oil columns may be present with the largest totaling c.423 ft (129 m). The size of the overall oil column encountered suggests that the East and West Tybalt discoveries are in communication and a more complex geological setting is present which includes both stratigraphic and stacked trapping mechanisms.

Initial analysis suggests the reservoir quality in this location is better than that encountered in the original East Tybalt discovery well and the net pay is estimated to be between 100 ft and 200 feet (30-60 m). As with the original discovery well, Valiant has run an extensive data collection program including a reservoir core, wireline logs, fluid sampling, pressure readings and a vertical seismic profile. The joint venture has now decided to proceed with a drill stem test of the well with results expected in the next two weeks.

Valiant will now use the data collected in the two Tybalt discovery wells to undertake a detailed reservoir and geological modeling exercise to determine the best way forward. Valiant believes the currently discovered volumes to be commercial and that the large oil column could lead to further upside in the block to the north and west. The potential upside in the Tybalt area is subject to considerable uncertainty due to the complexity of the geology encountered and will need to be confirmed by further appraisal drilling.

Valiant act as operator of the blocks with 80% working interest with the remaining 20% held by Agora Oil & Gas (UK) Limited.

Peter Buchanan, Valiant's CEO, commented, "We are pleased that oil has been discovered in the second Tybalt well in a column which exceeded our pre-drill estimates. We will now work hard to incorporate the extensive data collected into our understanding of the discovery in order both to move it rapidly forward towards commercialization and better define the potential upside in the area which will likely require further appraisal drilling in the near future."

Tags: Valiant Petroleum Limited