valhalla update

Present Depth at 0600 hrs: 2405mMD
Time of Reporting: 0600 hrs, WST 13 December 2007
Operations Since Last
Report:
Resumed drilling from 1224m on 7th December and have
continued drilling with no problems to current depth of
2405mMD in the Upper Laurel Clastics.
Current Operations: Drilling ahead 216mm (8 ½�) hole to next target, Lower Laurel
Clastics.
Hydrocarbon indications: Elevated gas levels above background and associated minor oil
shows in cuttings were detected whilst drilling interbedded
sandstones and claystones of the Anderson Formation, and
interbedded limestones, claystones and sandstones of the
Fairfield Group. The significance of these indications will be
determined once the well has reached total depth and wireline
logging has been completed.
Comment: The continuing presence of oil and gas shows in the well
remains encouraging.