Tiara

Vancouver-based Valkyries Petroleum Corp. said initial test results for its Canales No. 1 well drilled on the Tiara prospect in South Texas is flowing 2.7 MMcf/d and 70 bbl of condensate a day. The well spudded in mid-April and reached final depth of 9,100 feet in early May. The well will be tied into nearby production facilities, and a full field appraisal program will be carried out over the next few months. Valkyries holds a 20.63% working interest in the Canales No. 1 well. Preparations are under way to drill an offset well in which the company will have a 37.5% working interest. Valkyries also reported that a private placement announced in March has closed. The placement raised gross proceeds of C$2.25 million through the sale of one million units at C$2.25/unit with each unit consisting of one common share of Valkyries and one-half of a share-purchase warrant. Proceeds will be used for general working capital purposes.