valhalla update: more delays

could be an uneventful xmas ....

Present Depth at 1200 hrs: 1224mMD

Time of Reporting: 1200 hrs, WST 6 December 2007
Operations Since Last

Report:
Subsequent to the loss of the bottom hole assembly reported last week, it was necessary to sidetrack Valhalla-1 (from 912mMD) as Valhalla-1 ST1. The well has since been deepened to 1224m but the rig is continuing to experience mechanical problems, slowing progress.
Current Operations: Pulling out of hole at 1224mMD due to downhole LWD tool failure.

Hydrocarbon indications: None in sidetrack.

Comment: The presence of oil shows from 110m to 925mMD in Valhalla-1 remains encouraging for the deeper primary objectives. They indicate that hydrocarbons have migrated to the Valhalla
structure.