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Drilling Activities Qarn Qaymah 3 ("QQ 3")

Source: www.gulfoilandgas.com 2/4/2011, Location: Middle East

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Calvalley continues to make progress in drilling the Qarn Qaymah 3 well. We are currently drilling through the main section of the primary reservoir of the Fractured Granitic Basement ("FGB"), which was encountered approximately 40 meters higher than expected. We expect to complete and test the well in March.

The well is designed to drill to a Total Depth ("TD") of approximately 4,500 meters, of which approximately 1,000 meters will be an open hole section over the oil leg of the FGB. The open hole section is expected to encounter seven (7) major fracture zones. Contingent on the success of QQ 3, Calvalley expects to keep the rig in the Qarn Qaymah area to drill additional deep exploration/appraisal wells.

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