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Calvalley: Yemen Crisis Delays Equipment Supply

Source: www.gulfoilandgas.com 3/23/2011, Location: Middle East

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Due to political developments in Yemen, we have experienced some delays that have impacted the supply of equipment from Sana’a into our area of operations. While we continue to operate all key areas of development, including operation of our production facilities and drilling activities with available materials on hand, transportation logistics have been challenging.

Construction of the Truck Offloading Facilities ("TOF") at Block 51, which is 95% complete, continues to face a setback due to transportation challenges. The final component required for the TOF’s telecommunication system for the metering system is currently being delayed in Sana'a due to transportation impediments. As an alternative measure, Calvalley is in discussions with the operator of Block 51 regarding the utilization of their existing metering system on a temporary basis. Should this alternative become available, the commissioning of the TOF could be completed within the next two weeks.

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