valhalla update

Proposed TD: Depth : 3500mMD; 0 metres offset
Elevation: Ground Level is 110.03mAMSL
Rotary Table is 115.73 mAMSL
Spud Date: 1900 hrs, WST 15 November 2007
Present Depth at 0600 hrs: 3466mMD
Time of Reporting: 0600 hrs, WST 20 December 2007
Operations Since Last
Report:
Continued drilling from 2405m through the clastics and
carbonates of the Fairfield Group to current depth of 3466mMD
in the Carbonates of the Fammenian (Nullara Equiv). During a
flow check, the drill pipe became stuck and while attempting to
free the pipe and regain circulation, the drill string parted some
300m above the bit. Operations are underway to retrieve the
fish.
Current Operations: Fishing operations.
Hydrocarbon indications: Elevated gas levels above background have continued whilst
drilling interbedded limestones, claystones and sandstones of
the Fairfield Group. The significance of these and earlier oil and
gas indications will be determined once planned wireline logging
and proposed Drill Stem Testing has been completed.
Comment: The presence of oil shows and the continuing presence of gas
shows in the well are encouraging. Drill stem testing of shows
is now planned and test intervals will be firmed up following the
completion of log analysis.