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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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