CALGARY, May 15, 2014 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or
the "Company") provides the following operations update for
Late in the evening on May 7, 2014 the oil pipeline between Block 18 and
the Ras Isa Terminal on the Red Sea was ruptured in two locations. On
May 8, 2014, the operator of Block 18 indicated that no further
shipments of crude oil would be accepted from Calvalley until the
pipeline was repaired.
At the time of the rupture, crude oil inventories at the Company's
central processing facility ("CPF") were reduced to normal operating
levels, leaving storage capacity available for approximately 10 days
production. Since the rupture on May 7, 2014, the pipeline operator has
been unable to repair the pipeline due to local constraints.
Calvalley intends to manage its production operations at Block 9
consistent with available storage capacity at the CPF and the ability
to transport its crude oil production.
The Company plans to initiate the drilling of the Ras Nowmah 7 appraisal
well as soon as the required services can be made available.
Calvalley management and staff continue to work closely with the
government of Yemen and local officials to resolve the concerns of
locals in the region of Block 9 in order to access the transportation
route to the crude oil transfer facilities at Block 51.
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.
This press release may contain forward-looking information. Words such
as "may", "will", "should", "could", "anticipate", "believe", "expect",
"intend", "plan", "potential", "continue", and similar expressions may
have been used to identify this forward-looking information. These
statements reflect management's current beliefs and are based on
information currently available to management. In particular,
information relating to pipeline repairs, crude oil inventory capacity,
the drilling of the Ras Nowmah well, and resolving concerns of locals
contain forward looking information. Forward-looking information can
involve significant risk and uncertainties. A number of factors could
cause actual results to differ materially from the results discussed in
the forward-looking information including, but not limited to,
operational risks, availability of supplies and services, potential
delays or changes in plans with respect to exploration or development
projects or capital expenditures, delays and interruptions in drilling
and completion activities for undetermined periods, success in drilling
activities, access to crude oil marketing facilities, changes in
general economic and market conditions and other risk factors. Although
the forward-looking information contained herein is based upon what
management believes to be reasonable assumptions, management cannot
assure that actual results will be consistent with this forward-looking
information. Investors should not place undue reliance on
forward-looking information. The forward-looking statements contained
herein are expressly qualified in their entirety by this cautionary
statement. The forward-looking information included in this press
release is made as of the date of this press release and Calvalley
assumes no obligation to update or revise it to reflect new events or
circumstances except as expressly required by applicable securities
SOURCE: Calvalley Petroleum Inc.
For further information:
firstname.lastname@example.org or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO