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Calvalley Provides Operations Update at Block 9

Source: www.gulfoilandgas.com 2/5/2014, Location: Middle East

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FollowingrecentdisruptionsintheHadramoutprovince,CalvalleyhasbeenworkingwiththeMinistryOfOil andotherstakeholderstomitigatetheimpactonproductionoperationsandreviewingalternativesforthe transportationofcrudeoilproduction.

CalvalleyhasreceivedanapprovalfromtheMinistryandtheoperatorofBlock18toaccessanalternative crudeoiltransferlocationatBlock18whichmarketscrudeoilthroughtheRasIsaterminalonthewestcoast ofYemen,pendingtherestorationofaccesstothetransferfacilitiestotheAshShihrterminal.

ThefacilitiesatBlock18,whichwereusedbytheCompanypriortothecommissioningofthetruckoff?loading facilityatBlock51,havebeenrecentlyrefurbishedandtestedtofacilitatethetransferofcrudeoilproduction. TheCompanyhasstartedtruckingcrudeoilfromitsstoragetankstothefacilityatBlock18,andisplanning toresumeproductionoperationsascrudeoilstoragecapacitybecomesavailable.

TheCompanyhascompletedthedrillingoftheappraisalwellatRasNowmahSouthandhasmovedthedrilling rigtotheRasNowmah7appraisalwelllocation.CompletionoftheRasNowmahSouthwellhasbeendeferred untilcrudeoilstoragecapacityisavailableandthedrillingoftheRasNowmah7appraisalwellhasbeen suspendedduetoconstraintsonservicecompaniestomobilizeequipmentinthearea.

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

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