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Calvalley Provides Operations Update at†Block†9

Source: www.gulfoilandgas.com 1/6/2014, Location: Middle East

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Calvalley† Petroleum† Inc.†provides†the following†operations†update for shareholders. Recent† disruptions† in †the† Hadramout†province†have†impacted†crude†oil†pipeline†shipments†and†crude†oil trucking† operations† in† the† area,† including†Calvalley†at†Block†9.†

Calvalley†is†managing†its†production†operations†at†Block†9†consistent†with†its†capability†to†transport†its†crude† oil†production.†The†Company†shut†down†production†from†the†Al†Roidhat†field†in†late†December†and†production† from†both†the†Hiswah†and†Ras†Nowmah†fields†have†now†been†shut†down†as†a†result†of†crude†oil†storage†tanks† being†full.†

†† Calvalley†management†and†staff†are†working†closely†with†the†government†of†Yemen†and†local†officials†to† resolve†the†concerns†of†locals†in†the†region†of†Block†9†and†to†return†production†operations†to†normal.†The† Company†believes†these†concerns†can†be†resolved†in†a†timely†manner.†

The†disruptions†to†the†crude†oil†transportation†network†are†localized†and†do†not†impact†either†production† capability†or†drilling†operations.†The†Company†currently†has†one†drilling†rig†active.†The†drilling†rig†is†currently† drilling†an†appraisal†well†at†Ras†Nowmah†South†and†results†from†the†drilling†operation†will†be†released†when† they†become†available.†The†forward†drilling†plan†includes†drilling†an†appraisal†well†in†the†Ras†Nowmah†field† and†then†to†drill†water†injection†wells†in†the†Hiswah†field†for†implementation†of†the†pressure†maintenance† scheme.†

Calvalley†is†an†international†oil†and†gas†company,†with†offices†in†Calgary,†Alberta,†Canada,†that†operates†its† 50%†working†interest†in†Block†9†of†the†Masila†Basin,†in†The†Republic†of†Yemen.†

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