Trading Update

VIALOGY PLC ("VIALOGY" or "THE COMPANY")

TRADING UPDATE

Another successful well completion for ViaLogy

London, January 20, 2011, ViaLogy PLC (LSE: VIY). ViaLogy announces that, under contract to its client, a large independent Exploration and Production company based in Texas, another successful well has been drilled and is in the process of being completed.

The well was drilled on a 15 square mile Permian Basin acreage block, analyzed and positioned using QuantumRD, the company's proprietary weak signal detection technology. Drilling took two weeks and reached a ViaLogy-designated total depth of over 11,000 feet. Initial well logging analysis shows multiple hydrocarbon pay zones at varying depths that could be exploited in a net interval of over 70 feet of effective carbonate porosity. Productive limestone porosities are typically very low in these Permian carbonates. For this formation to be economically viable zone porosities must reach at least 4%. One of ViaLogy's key challenges was to locate these carbonate zone porosities, delineate hydrocarbon-bearing reservoirs, identify oil-water contact and quantify their areal and vertical extent. Detailed volumetrics for the different zones will be computed in the coming weeks.

ViaLogy CEO Robert Dean said, "This is another indication of the consistency and repeatability of QuantumRD to predict reservoir properties such as lithology, fluid-presence, porosity, and delineate stratigraphic reservoirs in a variety of geological settings. Industry acceptance of QuantumRD continues to increase." He added, "While our focus continues to expand to working with global majors on applying QuantumRD to larger exploration and development blocks, and complex deepwater formations, we have a significant backlog of onshore areas in the US where QuantumRD can make a significant contribution in de-risking."

For further information contact: 

ViaLogy PLC

Terry Bond, Chairman - UK & Europe +44 (0) 1235-834734

Nominated Advisor to ViaLogy PLC (Seymour Pierce)

Mark Percy / Catherine Leftley, Corporate Finance +44 (0) 20-7107-8000

Katie Ratner / Jeremy Stephenson, Corporate Broking +44 (0) 20-7107-8000

About ViaLogy:

ViaLogy provides reservoir characterization, geophysical imaging and hydrocarbon sizing services to global oil and gas customers based on proprietary, patented active signal processing technology. ViaLogy's QuantumRD platform assists clients in de-risking prospects over a broad range of subsurface lithologies and complex stratigraphies to generate drilling targets, position offsets and enhance recovery. ViaLogy's core technology rapidly and accurately detects weak signals buried in high noise background and clutter, and is applicable to active/passive seismic, electromagnetic and magneto telluric data. By exploiting normally disregarded noise variations induced by changes in porosity, fluid presence and permeability across the formation, and adding computer-designed noise to the data, ViaLogy is able to amplify subtle noise variations to enhance areal and depth resolution in complex lithologies that are not achievable through conventional means. For more information on ViaLogy, visit www.vialogy.com.