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Calvalley Provides Operations Update atBlock9

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

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Calvalley Petroleum Inc.providesthe followingoperationsupdate for shareholders. Recent disruptions in the Hadramoutprovincehaveimpactedcrudeoilpipelineshipmentsandcrudeoil trucking operations in the area, includingCalvalleyatBlock9.

CalvalleyismanagingitsproductionoperationsatBlock9consistentwithitscapabilitytotransportitscrude oilproduction.TheCompanyshutdownproductionfromtheAlRoidhatfieldinlateDecemberandproduction fromboththeHiswahandRasNowmahfieldshavenowbeenshutdownasaresultofcrudeoilstoragetanks beingfull.

CalvalleymanagementandstaffareworkingcloselywiththegovernmentofYemenandlocalofficialsto resolvetheconcernsoflocalsintheregionofBlock9andtoreturnproductionoperationstonormal.The Companybelievestheseconcernscanberesolvedinatimelymanner.

Thedisruptionstothecrudeoiltransportationnetworkarelocalizedanddonotimpacteitherproduction capabilityordrillingoperations.TheCompanycurrentlyhasonedrillingrigactive.Thedrillingrigiscurrently drillinganappraisalwellatRasNowmahSouthandresultsfromthedrillingoperationwillbereleasedwhen theybecomeavailable.TheforwarddrillingplanincludesdrillinganappraisalwellintheRasNowmahfield andthentodrillwaterinjectionwellsintheHiswahfieldforimplementationofthepressuremaintenance scheme.

Calvalleyisaninternationaloilandgascompany,withofficesinCalgary,Alberta,Canada,thatoperatesits 50%workinginterestinBlock9oftheMasilaBasin,inTheRepublicofYemen.

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