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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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Following†recent†disruptions†in†the†Hadramout†province,†Calvalley†has†been†working†with†the†Ministry†Of†Oil† and†other†stakeholders†to†mitigate†the†impact†on†production†operations†and†reviewing†alternatives†for†the† transportation†of†crude†oil†production.††

Calvalley†has†received†an†approval†from†the†Ministry†and†the†operator†of†Block†18†to†access†an†alternative† crude†oil†transfer†location†at†Block†18†which†markets†crude†oil†through†the†Ras†Isa†terminal†on†the†west†coast† of†Yemen,†pending†the†restoration†of†access†to†the†transfer†facilities†to†the†Ash†Shihr†terminal.†

The†facilities†at†Block†18,†which†were†used†by†the†Company†prior†to†the†commissioning†of†the†truck†off?loading† facility†at†Block†51,†have†been†recently†refurbished†and†tested†to†facilitate†the†transfer†of†crude†oil†production.† The†Company†has†started†trucking†crude†oil†from†its†storage†tanks†to†the†facility†at†Block†18,†and†is†planning† to†resume†production†operations†as†crude†oil†storage†capacity†becomes†available.††

The†Company†has†completed†the†drilling†of†the†appraisal†well†at†Ras†Nowmah†South†and†has†moved†the†drilling† rig†to†the†Ras†Nowmah†7†appraisal†well†location.†Completion†of†the†Ras†Nowmah†South†well†has†been†deferred† until†crude†oil†storage†capacity†is†available†and†the†drilling†of†the†Ras†Nowmah†7†appraisal†well†has†been† suspended†due†to†constraints†on†service†companies†to†mobilize†equipment†in†the†area.††

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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