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Calvalley has Resumed Operations at Block 9

Source: www.gulfoilandgas.com 2/28/2012, Location: Middle East

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Calvalley Petroleum Inc. is pleased to report that it has resumed operations at Block 9, Republic of Yemen. Trucking of crude oil for export from the Company’s central processing facility (“CPF”) in Block 9 to the truck offloading facility (“TOF”) at Block 51 resumed this morning with a total shipment of approximately 14,000 barrels from the current inventory of 55,000 barrels of crude oil stored at the CPF. Trucking of crude oil from the CPF to the TOF was suspended earlier this month due to increased security risks within the Masila area, and constraints resulting from the work stoppage at the PetroMasila operated export facility.

Production operations at Calvalley’s Hiswah and Ras Nowmah fields are returning to normal. The Company is currently scheduling the resumption of production at the Al Roidhat field over the next few days. The Company plans to resume drilling operations within the next few weeks, consistent with the improved security situation and a return to a stable environment.

Calvalley management wishes to recognize the Minister of Oil and the local authorities for their assistance in resolving the local security issues and for their support in establishing an environment under which operations can be performed without interruption. The interests of all parties are aligned to maximize production volumes and resume development and exploration drilling programs. The Company is planning to release information in respect of its 2011 financial results by March 9, 2012.

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