valentine looks the goods, page-9

PCL Ann. today

Valentine-1 Exploration Well Drilling Update

Pancontinental Oil and Gas NL (ASX: PCL) wishes to advise that Joint Venture (JV) partner
and operator of the EP 104 & R1 Onshore Canning Basin project, Arc Energy (ASX: ARQ),
has announced that operations at the Valentine 1 exploration well are continuing at a depth
of 2,589m.

Further drilling through the claystones and limestones of the Fairfield Group has revealed
additional elevated gas readings at 2295m, 2354m, 2404m, 2415m and 2470m MD, each
representing an interval of several metres. A wiper trip is presently being run to condition the hole
prior to running an intermediate wireline logging suite to evaluate the significance of these
hydrocarbon indications. The total measured depth of the Valentine-1 well is programmed to be
3,407mRT with the target Virgin Hills Formation at approximately 3,222mRT. Final interests in R1
and EP104, post the Valentine 1 well farm-in earning program are:
ARC Energy Limited (Operator) 38.95%
Empire Oil and Gas NL 14.8%
Emerald Oil & Gas NL 12.75%
Pancontinental Oil & Gas NL 10%
Phoenix Resources PLC 10%
First Australian Resources Limited 8%
Indigo Oil Pty Ltd 5.5%


Pancontinental General Manager, Matthew Battrick said: “Drilling and evaluation operations are
continuing; we are currently 23 days into the well and still around a week away from the primary
target, if penetration rates remain the same as we near the total depth of this well”.

“The six zones of gas shows now recorded from around 2,250 to 2470mRT constitute a significant
interval in a section of the stratigraphy that was not considered our primary target. This is very
encouraging news and the entire interval is in need of urgent wireline log evaluation, prior to
deepening the well to the primary target.” Matthew said.