CALGARY, Oct. 4 /CNW Telbec/ - Calvalley Petroleum Inc., (TSX: CVI.A) -
Calvalley Petroleum Inc. (the "Company" or "Calvalley"), is pleased to
announce progress report of drilling Malik 1 exploration well on Block 9 in
the Republic of Yemen.
Malik-1 is located in the southern part of the Wadi Hadramut, in the
central region of Block 9, and was drilled to evaluate a large east - west
trending structural closure that encompasses a thick stratigraphic succession
having numerous reservoir-seal combinations. The well was spud on July 27,
2007 and the Qishin Clastics sandstone, a world class reservoir, was
intersected at a depth of 1233 metres. The reservoir zone displayed light
brown oil staining and fair to good oil shows over 14 m section, with light
yellow direct fluorescence. Sporadic oil shows continued to 1280 meters. The
well site description of fluorescence suggest the presence of a medium to
light oil within the primary Qishin reservoir.
The drilling continued to assess deeper horizons, and at a depth of 1466
meters, the upper Saar Limestone was encountered and oil staining was observed
in the cuttings.
Log analysis by an independent third party indicates the presence of four
meters of net potential oil pay in the upper Qishin Clastics, and two meters
of oil pay in the Upper Saar Limestone. These zones will be confirmed with
testing after completion of the drilling operation.
After setting 9 5/8" casing from surface to a depth of 1632 metres,
drilling continued to a final depth of 3307 metres, two hundred and fifty
meters into the basement. Two very strong gas shows and poor oil shows were
encountered in the basement between 3120 metres and 3160 meters. The basement
lithology is a granite. Image logs run over this upper basement section
confirm the presence of open, natural fractures and therefore the possibility
of having intersected a fractured basement play. Such fractured basement
production is an important component of the Yemeni basin development. Several
other basement discoveries have been made in other blocks within Masila basin.
There is a strong indication that fractures within granite basement extend
diagonally and may be parallel to each other.
Accordingly, the drilling program has been modified. The vertical portion
of the well in the basement will be cemented and re-drilled horizontally to
attempt to encounter this multiple fracture system. The drilling is expected
to be completed within the next two weeks.
The Malik-1 exploration well has provided the Company with the first
indication of oil migration and potential entrapment of medium gravity crude
oil within the Qishin Clastics, Saar Naifa and possibility of hydrocarbon
within the granite basement in the central part of Block 9.
The Company anticipates testing the fractured basement potential in
Malik-1 as well as the oil shows in the Qishn and Saar formations. This
testing program will commence upon drilling completion. Positive results may
lead to additional appraisal drilling at the Malik structure.
The Malik structure is 10 kilometres long and one to two kilometres wide.
Malik-1 was drilled on the extreme eastern end of the structure at the edge of
the apparent Qishin level closure. Three potential up dip locations have been
identified on the existing seismic grid. In addition, the seismic crew
currently active in Block 9 has been redirected to acquire another seven lines
(84 kms) of 2D seismic data, in order to firm up additional locations to the
west of the Malik-1 well.
Calvalley Petroleum Inc. an international oil and gas exploration and
production company based in Calgary, Alberta. Calvalley is listed on the
Toronto Stock Exchange, trading under the symbol "CVI.A".
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,
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.
For further information:
For further information: Edmund M. Shimoon, CEO, Calvalley Petroleum
Inc., (403) 297-0491, Fax: (403) 297-0499; Renmark Financial Communications
Inc.: Neil Murray-Lyon, firstname.lastname@example.org; Tina Cameron,
email@example.com; (514) 939-3989; Fax: (514) 939-3717;