Valkyries Petroleum Corp.
TSX VENTURE : VPC

Valkyries Petroleum Corp.

January 26, 2006 13:36 ET

Valkyries Prepares to Drill Offshore Caspian Lagansky Well Adjacent to Lukoil's Major New Caspian Discovery

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 26, 2006) - Valkyries Petroleum Corp. ("Valkyries" or the "Company") (TSX VENTURE:VPC) is pleased to announce that preparations are underway for drilling the Company's first exploration well on the Lagansky Block, located offshore in the Russia sector of the Caspian Sea. New 2D seismic has been acquired which confirms several drillable prospects on the Block. The Company is currently converting a set of shallow draft barges for the drilling operations. Valkyries expects to spud its first well at the end of the second quarter of 2006, targeting the large Morskoye prospect. The prospect is located in approximately 2 meters of water offshore. Drilling will target three main Cretaceous and Jurassic reservoirs with depths ranging from 800 to 1600 meters.

The Lagansky Block encompasses over 2,000 square kilometers and is located immediately adjacent to and directly on trend with Lukoil's recently announced major new oil discovery - considered one of the largest new discoveries in Russia over the past 10 years (please see attached map).

The discovery well on Lukoil's new field, which has been re-named V. Filanovsky (formerly Rakushechnoye), was reported in a Lukoil news release dated January 25, 2006 (see www.lukoil.com) to flow at a rate of 800 tons per day (approximately 6,240 bopd) of ultra-light (44o API), water-free, low-sulfur oil. Lukoil has reported that a multi-well development program is planned for this new field.

Keith Hill, President of Valkyries, commented, "The discovery of a major new offshore Caspian field in close proximity to and on trend with one of our key prospects adds an exciting new dimension to the play. We look forward to the possibility of confirming the extension of this success into our Lagansky Block."

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

Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management.

On Behalf of the Board

Keith C. Hill, President

To view the attached map, please click on the following link: http://www.ccnmatthews.com/docs/vpc0126.jpg


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Contact Information

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