Calvalley announces approval of normal course issuer bid



    CALGARY, April 21 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or the
"Company") (TSX:CVI.A) is pleased to announce that the Toronto Stock Exchange
("TSX") has accepted its notice to make a normal course issuer bid ("NCIB") to
purchase outstanding Class A Common Shares ("Common Shares") on the open
market, in accordance with the rules of the TSX.
    As per the TSX approval, Calvalley is authorized to purchase up to
4,948,029 Common Shares representing 5% percent of the currently issued and
outstanding Common Shares of Calvalley. Unless Calvalley is utilizing a Block
Purchase Exemption as permitted by the TSX, purchases are subject to a daily
purchase restriction equal to 25% of the average daily trading volume of the
Common Shares over the past six calendar months, or a maximum of 28,824 Common
Shares per trading day. As of this announcement, there are 98,960,580 Common
Shares outstanding.
    Calvalley is authorized to make purchases during the period of April 23,
2009 to April 22, 2010 or until such earlier time as the NCIB is completed or
terminated at the option of Calvalley. Any Common Shares Calvalley purchases
under the NCIB will be purchased on the open market through the facilities of
the TSX at the prevailing market price at the time of the transaction. Common
Shares acquired under the NCIB will be cancelled.
    Calvalley's Board of Directors believes, from time to time, the market
price of its Common Shares may not reflect their underlying value. The Company
acquired 2,909,918 Common Shares at an average price of $2.238 per Common
Share under its previous NCIB which expired on April 15, 2009. Calvalley's
strong cash flow capability and debt-free balance sheet provide the
opportunity to capitalize on the current valuation of Calvalley in the market
which, in the Board's opinion, significantly discounts the value and potential
of the Company's asset base.

    Calvalley Petroleum Inc.

    Calvalley Petroleum Inc. is an international oil and gas company based in
Calgary, Alberta. The Company operates its 50% working interest in Block 9 in
the Masila Basin of the Republic of Yemen and 100% working interest in the
Gimbi and Metema Blocks in Ethiopia.

    Forward-Looking Statements

    This press release may contain forward-looking statements including,
without limitation, financial and business prospects and financial outlooks,
and such statements may be forward-looking statements which reflect
management's expectations regarding future plans and intentions, growth,
results of operations, performance and business prospects and opportunities.
Words such as "may", "will", "should", "could", "anticipate", "believe",
"expect", "intend", "plan", "potential", "continue", and similar expressions
have been used to identify these forward-looking statements. These statements
reflect management's current beliefs and are based on information currently
available to management. Forward-looking statements involve significant risk
and uncertainties. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements
including, but not limited to, changes in general economic and market
conditions and other risk factors. Although the forward-looking statements
contained herein are based upon what management believes to be reasonable
assumptions, management cannot assure that actual results will be consistent
with these forward-looking statements. Investors should not place undue
reliance on forward-looking statements. These forward-looking statements are
made as of the date hereof.
    Forward-looking statements and other information contained herein
concerning the oil and gas industry and Calvalley's general expectations
concerning this industry are based on estimates prepared by management using
data from publicly available industry sources as well as from reserve reports,
market research and industry analysis and on assumptions based on data and
knowledge of this industry which Calvalley believes to be reasonable. However,
this data is inherently imprecise, although generally indicative of relative
market positions, market shares and performance characteristics. While
Calvalley is not aware of any misstatements regarding any industry data
presented herein, the industry involves risks and uncertainties and is subject
to change based on various factors.

    %SEDAR: 00001745E




For further information:

For further information: investorrelations@calvalleypetroleum.com,
Edmund Shimoon, CEO, Memet Kont, COO, Bill Cummins, CFO, (403) 297-0490

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Calvalley Petroleum Inc.

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