valhalla update

Present Depth at 0600 hrs: 893mMD
Time of Reporting: 0600 hrs, WST 29 November 2007
Operations Since Last
Report:
Drilled 311mm hole to 999mMD. Operational difficulties have
resulted in the need to set casing higher than planned and to
sidetrack around pipe stuck in the original well bore.
This is not expected to have any significant impact on achieving
deeper well objectives.
9 5/8� casing has been run to 893mMD and cemented in place.
Current Operations: Preparing to drill ahead to TD.
Hydrocarbon indications: Oil fluorescence was recorded in interbedded sandstones and
claystones over multiple intervals from 110m to 925mMD.
Pressure tests and reservoir fluid samples have been taken over
the better reservoir interval 642m to 938mMD, and preliminary
results indicate the sands across this interval are likely to
produce water.
Comment: The presence of oil shows from 110m to 925mMD remains
encouraging for the deeper primary objectives. They indicate that
hydrocarbons have migrated to the Valhalla structure.