CALGARY, Aug. 23 /CNW/ - Calvalley Petroleum Inc. (TSX: CVI.A)
Calvalley Petroleum Inc. (the "Company" or "Calvalley"), an international oil and gas exploration and production company, based in Calgary, Alberta, announces additional test results of the Company's Ras Nowmah Oil Field discovery in the Republic of Yemen.
Additional test data were obtained utilizing a larger capacity downhole pump ("ESP") which was installed by the Company for this latest phase of testing operations. The well flowed at a stabilized rate of approximately 3,000 bbl/d of sweet crude (approximately 30 degree API) and no formation water with only 9.5% pressure drawdown to the maximum operational capability of the ESP.
Based on the pressure drawdown and build-up data, this 2nd phase of testing clearly indicates that the Ras Nowmah-2 well is potentially capable of producing at much higher flow rates. The test data were analyzed by an independent reservoir engineering firm, in Calgary, which resulted in a calculated flow rate in excess of 5,000 bbl/d at a 20% pressure drawdown.
As previously announced on August 16, 2010, the Ras Nowmah-2 well encountered 41 meters of gross oil pay with only the upper 15 meters of pay having been perforated for initial testing. Structurally, the Qishn Sands, which were the primary target zone, came in approximately 4 meters higher than expected.
Calvalley and its Joint Venture partners are strongly encouraged by this discovery and its potential for opening a new exploration front on Block 9. As a result, Calvalley is putting an aggressive drilling program in place to further delineate the Ras Nowmah Field discovery and to explore several other prospects in the vicinity of this discovery. Currently, the Company is in the process of preparing the Ras Nowmah-3 appraisal well location which is expected to spud in late September or early October.
Calvalley Petroleum Inc.
Calvalley Petroleum 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.
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.
SOURCE Calvalley Petroleum Inc.
For further information: For further information: email@example.com, Edmund Shimoon, Chairman and CEO, Memet Kont, President and COO, Zacharie Magnan, acting CFO, +1 (403) 297-0490