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Calvalley Delivers First Oil Into Masila Pipeline

Source: 4/12/2011, Location: Middle East

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Calvalley Petroleum Inc. is pleased to announce that it has commenced delivery of Block 9 production of crude oil into the Masila Export Pipeline System ("MEPS") through the Company’s Truck Offloading Facilities ("TOF") located at Block 51. Current deliveries utilize existing space in the Block 51 metering system. This temporary arrangement will be in place until early May when the Company's own metering system will be fully functional.

With the initiation of operations at the TOF, Calvalley is a now able to begin production of the first commercial oil from the Ras Nowmah and Al Roidhat fields, into the MEPS.

As well, and despite the unsettled security environment in Yemen, Calvalley continues its activities, as close to normal as possible, with two drilling rigs and one service rig in operation. Completion of the TOF is a major milestone in Calvalley’s program of increasing production, by bringing significant volumes of shut-in production on line, takes advantage of higher oil prices and market accessibility provided by the MEPS. As a result, all of Calvalley's blended crude oil will receive the Masila Blend price, which is benchmarked to Brent Crude pricing.

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Related Categories: General  LNG Carriers  LNG Terminal  Natural Gas Storage  Oil and Gas Pipeline  Oil Storage  Railways  Tank Truck  Tankers 

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