CALGARY, Aug. 16 /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 the successful completion and test results of it's new Ras Nowmah Oil Field well, Ras Nowmah-2, in the Republic of Yemen. The well was successfully completed, in record time and under budget, in late July.
Ras Nowmah-2 has been initially tested at 1,227 bbl/d of approximately 30 API sweet crude and no formation water with only 4% pressure drawdown to the maximum capacity of the available down-hole pump. This was the largest pump available to the Company at the time of well completion. The well encountered 41 meters gross oil pay but only upper 15 meters of pay was perforated for this initial test.
Structurally, the Qishin Sands, which were the primary target zone, came in approximately 4 meters higher than expected. The pressure drawdown and build-up test indicated the well is capable of potentially producing at much higher rates. Based on these initially positive results, the Company has expedited the acquisition of a pump with significantly higher capacity. The new pump will be on location within several days, for the resumption of testing.
The initial test results have two significant implications for the future exploration and development of Block 9:
1) Lighter oil -- Contrary to previous belief that Qishin structures in
Block 9 contain only heavy oil, the Ras Nowmah discovery has proven
that the Block 9 Qishin structures are similar to those in the Masila
block. The success of Ras Nowmah has added a new and exciting
exploration dimension to Calvalley's already rich portfolio of
prospects inventory. As a result, both of the near-term and long-term
exploration programs are expected to expand significantly. In
addition, the lighter nature of the Ras Nowmah crude is expected to
result in strong recovery factors, which is expected to positively
impact the Company's total Block 9 reserves.
2) Ras Nowmah is situated along a prospective fairway where Calvalley
has already identified several other Qishin structures. The success
of Ras Nowmah-2 has reduced the geological risk of exploration
drilling on these structures.
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: firstname.lastname@example.org; Edmund Shimoon, Chairman and CEO, Memet Kont, President and COO, Zacharie Magnan, acting CFO, +1 (403) 297-0490