Valkyries Petroleum Corp.

Valkyries Petroleum Corp.

January 11, 2005 12:08 ET

Valkyries Petroleum Updates Program in Russia


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VALKYRIES PETROLEUM CORP.

TSX VENTURE SYMBOL: VPC

JANUARY 11, 2005 - 12:08 ET

Valkyries Petroleum Updates Program in Russia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2005) - Valkyries
Petroleum Corp. (the "Company") (TSX VENTURE:VPC) is pleased to provide
an update of its operations in Russia.

The first two development wells drilled in the recently acquired
Pechoraneftagas project in Russia have been completed as producers. The
#232 well was drilled in the Talyu portion of the field and encountered
a thick porous reservoir section in the main Devonian reef objective.
The well is currently producing 280 barrels of oil per day with no water
cut from a 4.5 meter perforated section. Based on the success of this
well, the rig has been skidded to test an updip location immediately to
the south. This well, #231, is currently drilling ahead in the section
above the reservoir. An additional well on the East Sotchemyu portion of
the field, #151, was also completed in late December and encountered
several thick reservoir packages in the Devonian reef section. It was
placed on production last week and is currently producing 350 barrels of
oil per day with no water cut.

The Kadzherom exploration discovery previously announced is undergoing
long term testing to determine reservoir continuity and productivity. A
decision on a further development program will be made once this testing
information has been obtained.

A 3D seismic program is currently being acquired to infill those
portions of the field not covered by the previous 3D survey conducted
last year. This survey will assist in identifying areas of porous
reservoir for the upcoming development drilling campaign. It is planned
to drill 12 additional development wells, including at least 2
horizontal wells, to significantly raise field production levels.

Valkyries President and CEO, Keith Hill, stated, "We are pleased to see
the first development drilling successes in Russia and will continue to
aggressively pursue production acceleration from this field. We feel
there is a large amount of upside in the field which the 3D seismic
should help us to develop."

Valkyries has a 50% interest in the Pechoraneftagas project.

Valkyries Petroleum Corp. is an upstream oil and gas company with
exploration and producing interests in Russia and the United States and
is currently in advanced stages of evaluation and negotiation on several
projects in the Former Soviet Union.

ON BEHALF OF THE BOARD

Keith C. Hill, President

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Valkyries Petroleum Corp.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    Website: www.valpete.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.