Calvalley Petroleum - Yemen Operations Update for the Month of February, 2007



    CALGARY, March 5 /CNW Telbec/ - Calvalley Petroleum Inc. (TSX: CVI.A) -
Calvalley Petroleum Inc. ("Calvalley" or the "Company"), an international,
junior oil and gas company based in Calgary, Alberta, is pleased to provide
the following update on its operations on Block 9 in the Republic of Yemen.

    Long Term Oil Marketing Arrangement Signed

    Calvalley is please to announce that it, along with its joint venture
partners Reliance Industries Limited and HoodOil Ltd., have entered into a
long-term crude oil purchasing agreement with Reliance Industries (Middle
East) dmcc ("RIME"), company based in Dubai, UAE. RIME is affiliated with
Reliance Industries Limited. This agreement is based on a "take or pay"
arrangement. The price has been set at the Yemen Official Selling Price
("OSP") less $U.S.0.50 per barrel. The OSP is based on the dated Brent price,
and is historically OSP has fluctuated between Brent plus $0.30 to Brent minus
$1.50. The February OSP was a Brent plus $0.30. This agreement will remain in
force for eighteen (18) months and renewable at the option of the parties.

    Oil Sales

    Calvalley, on behalf of its joint venture partners, sold 60,000 barrels
of oil in January, 2007 and is committed to selling 270,000 barrels in March,
2007. These figures represent the joint venture partners' share of oil
production only and are net of all royalties and share of production
attributed to the Government of Yemen.

    Work Program and Budget

    The Block 9 joint venture presented its 2007 Work Program and Budget of
approximately $200 million US dollars to the Government of Yemen's in
December, 2006. The Program calls for an active exploration and development
plan, including the main transmission pipeline, completion of existing Hiswah
wells, the drilling and completion of four new wells in the Al Roidhat field,
reservoir modeling and maintenance, continued expansion of the producing
capacity of the Hiswah field. Three additional development wells in Hiswah
have been approved and further approvals are anticipated following the initial
compilation of reservoir modeling data. Several exploration wells are also
planned together with an additional acquisition of 300 to 400 kilometres of
2D seismic lines.

    Pipeline Construction Tendering Process

    Work continues with respect to the construction of a 250 kilometre
16" pipeline that will transport crude oil from Block 9 to Block 18 for
furtherance to Ras Isa marine terminal for export. Requests for
prequalification tender applications have been advertised. The
prequalification of candidates for the engineering, procurement and
construction and management ("EPCM") has been approved by the Government of
Yemen and the tender packages have been distributed. Concurrently, the Company
is now receiving submissions relating to prequalification for the EPC
(pipeline construction only) tender. Once these tenders are received and the
contracts awarded, work related to the aforementioned contracts will commence
thereafter.

    Well Testing

    Individual testing of Hiswah wells recently commenced through a test
separator package. The results of this campaign will assist in building the
characterization model for the reservoir simulation study and aid in
evaluating the Production Enhancement Pilot Project (PEPP) designed to
increase & optimize well productivity. While this testing negatively affects
daily production volumes near term with wells being temporarily shut in for
pressure build ups (PBUs), the information provides far more valuable long
term benefits in areas of reservoir management and production optimization by
way of potential enhancement from multilateral legs, acid stimulation and
hydraulic fracturing. This campaign will serve as basis for secondary recovery
mechanism utilizing water and gas injection methodology.

    Production

    Block 9 crude oil deliveries averaged over 7,000 barrels per day during
December. This dropped to 6,300 bopd and 4,900 bopd in January and February,
respectively as an extensive well testing program, described above, took some
of the wells off of production for pressure build-up testing.

    Central Processing Facility (CPF) and Camp Facilities

    Construction of the Central Processing Facility continues. The pipe rack
and the testline are completed and approximately 90% of the field gathering
system, group separator and treater connections are completed. The site camp
is being expanded with living quarters for an additional sixty workers. The
living quarters and the kitchen have arrived and are awaiting installation.

    THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    This press release may contain forward-looking statements, including
expectations of future production, cash flow and earnings. These statements
are based on current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ materially from
those anticipated or implied in the forward-looking statements. These risks
include but are not limited to: the risks associated with the oil and gas
industry (e.g. operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainties of reserve estimates; the
uncertainty of estimates and projections related to production, costs and
expenses, and health, safety and environmental risks), commodity price, price
and exchange rates fluctuations and uncertainties resulting from potential
delays or changes in plans with respect to exploration or development projects
or capital expenditures. Additional information on these and other factors
that could affect Calvalley's operations or financial results are included in
Calvalley's reports on file with Canadian securities regulatory authorities.
    %SEDAR: 00001745E




For further information:

For further information: Renmark Financial Communications Inc.: Neil
Murray-Lyon, nmurraylyon@renmarkfinancial.com; Danielle Velez,
dvelez@renmarkfinancial.com; (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com; Source: Edmund M. Shimoon, CEO, Calvalley Petroleum
Inc., (403) 297-0491, Fax: (403) 297-0499

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