Valkyries Petroleum Corp.
TSX VENTURE : VPC

Valkyries Petroleum Corp.

June 28, 2005 11:31 ET

Valkyries Petroleum Updates U.S. Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 28, 2005) - Valkyries Petroleum Corp. (the "Company") (TSX VENTURE:VPC) is pleased to provide an update of its operations the United States.

In Texas, the Company has logged and cased the Tepee Vanco #1 well which is an extension of the previously announced Ruby oil discovery. The well intersected 38 gross feet and 24 net feet of oil pay in the primary Pettus sandstone objective and will be tested and brought on stream within the next 10 days. The well also discovered a new gas zone in the shallow Miocene Formation which appears to have 7 net and gross feet of gas pay. The drilling rig is currently being mobilized to the Ruby Shallow prospect. This well will test the downdip limit of the Ruby oil accumulation and will also target untested shallower objectives in the Hockley, Cole and Frio intervals which appear to be prospective on the recent 3D seismic survey. The company holds an 18.75% working interest share in these wells.

The Company is also pleased to announce that they have successfully brought the Diamond prospect on production and thus have all four previous existing discoveries tied into infrastructure. The current net production to the Company from Texas is approximately 570 thousand cubic feet of gas per day and 44 barrels of oil per day.

The Company also holds a 33.3% investment in Rincon Energy Partners LLC which has recently completed two additional wells in the Gulf of Mexico: an offshore gas discovery which is currently being evaluated by the operator and an onshore well which reached total depth last week and was plugged and abandoned.

Valkyries President and CEO Keith Hill stated "The trend of exploration successes in the United States continues at a good pace with 7 discoveries in our last 8 wells. We continue to be encouraged with the potential of our U.S. portfolio."

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

ON BEHALF OF THE BOARD

Keith C. Hill, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Valkyries Petroleum Corp.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    www.valpete.com