Calvalley Petroleum Inc. Releases Third Quarter Results



    CALGARY, Nov. 12 /CNW Telbec/ - 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, is
pleased to announce the release of its operating results and interim
consolidated financial statements for the third quarter of 2007. All financial
information is stated in United States dollars.
    The Company has filed its quarterly report, including the interim
consolidated financial statements and management's discussion and analysis, on
SEDAR (www.sedar.com). This quarterly report can also be found on Calvalley's
website at www.calvalleypetroleum.com.

    
    Financial Highlights
    -------------------------------------------------------------------------
                                   Three months ended      Nine months ended
                                      September 30            September 30
                                 --------------------------------------------
    (in thousands of dollars)       2007        2006        2007        2006
    -------------------------------------------------------------------------

    Revenue from crude oil sales  13,276      20,834      25,192      20,876
    Volume of crude oil sales
     (bbls)                      180,658     255,000     375,180     255,000
    Operating income(1)            5,038      14,796      10,619      13,833
    Net income (loss)              7,971      14,366      16,455      14,291
    Capital expenditures           7,476       5,388      24,369      18,960
    Cash flow from operations(1)  11,058      18,972      23,579      17,636
    Cash flow from operating
     activities                   28,844      18,982      27,183      17,443
    -------------------------------------------------------------------------
    (1) See "Non-GAAP Measures"


    - Calvalley's revenue from crude oil sales was $13.2 million and
      $26.2 million for the third quarter and the nine months ended
      September 30, 2007 from the sale of 180,658 and 375,180 barrels of
      Marib light crude oil, respectively.

    - Net income was $7.9 million and $16.5 million for the three months and
      nine months ended September 30, 2007, as compared to $14.4 million and
      $14.3 million for the same periods of 2006. The reduction to the crude
      oil sales revenue and the net income for the third quarter of 2007 as
      compared to 2006 does not indicate a reduction in production or sales
      activity or overall profitability. Rather, the joint venture sold all
      of its production from the nine months of production in 2006 in a
      single lift of 485,000 barrels during August 2006. By comparison, the
      joint venture has lifted and sold 761,000 barrels for export sales
      during the nine months of 2007 but reported the sales over the three
      quarters of the year.

    - Cash flow from operations was $11.1 million and $23.6 million for the
      three months and nine months ended September 30, 2007, as compared to
      $19.0 million and $17.6 million for the same periods of 2006. Again the
      comparative decrease was due to a relatively large sale in
      August, 2006.

    - Calvalley continues to be well financed and capitalized with no
      outstanding debt and working capital of $76.9 million, including
      $66.9 million of cash on hand.


    Operating Highlights
    -------------------------------------------------------------------------
                                                         Nine months ended
                                                -----------------------------
                                                  September 30,  December 31,
    (barrels of oil per day)                              2007          2006
    -------------------------------------------------------------------------

    Total Block 9 production                             5,298         4,234

    Calvalley working interest (50.0%)                   2,649         2,117

    Calvalley net entitlement (31.3%)                    1,658         1,327
    -------------------------------------------------------------------------


    - Average daily production from the Block 9 for the three months ended
      September 30, 2007 was 5,355 barrels per day, up from the second
      quarter average of 5,135 barrels per day reflecting the continued
      impact of a large scale well testing program.

    - Four of the eight wells in the Al Roidhat field are ready for
      production pending transportation and blending approvals.

    - A 769 kilometer 2D seismic acquisition program was completed in
      September, 2007 and a Canadian company has been awarded the processing
      contract for this data. In addition, a program to reprocess
      1,124 kilometers of seismic data was completed. It is anticipated that
      these programs and other initiatives by Calvalley's exploration team
      will identify new leads and prospects and add to the prospect inventory
      for drilling in 2008 and 2009.

    - In August, 2007, Calvalley and the Ministry of Oil and Minerals of the
      Republic of Yemen (the "MOM") agreed to divide responsibility for the
      construction of a pipeline from Block 9 to Block 18 between Calvalley
      and another operator along the route, reducing Calvalley's portion from
      250 kilometers to 145 kilometers and thereby significantly reducing
      Calvalley's capital cost commitment. Calvalley, together with the MOM,
      has pre-qualified three engineering companies to submit a bid for
      engineering, procurement and construction management ("EPCM") work
      associated with the pipeline. The bid closing has been scheduled for
      November 15, 2007 and the finalization of the contract is expected to
      be completed shortly thereafter.

                           (xxxxxxxxxxxxxxxxxxxxx)

    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.
    
    %SEDAR: 00001745E




For further information:

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

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