CALGARY, April 10, 2014 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or
the "Company") provides the following update for shareholders.
The Company has been restoring production activities as crude oil
storage capacity is made available. From mid-February, when the
facilities at Block 18 were refurbished, to March 31, 2014 the Company
has shipped over 170,000 barrels of crude oil (gross) to Block 18. The
Company continues to monitor the accessibility of the truck route to
Block 51 in order to resume shipments via this route as soon as it is
possible to do so.
Production activity restarted in mid-February with average gross
production for February of approximately 530 barrels per day. Gross
production levels increased significantly in March and are currently in
the 3,800- 4,000 barrels per day range. Gross production for the first
quarter of 2014 is approximately 1,100 barrels per day with average
gross production in March reaching over 3,700 barrels per day.
Currently the Hiswah field is producing approximately 2,600 barrels per
day from 20 producing wells with production of approximately 400
barrels per day available from 4 shut-in wells. The Ras Nowmah 2 well
was restarted in early March 2014 and is producing approximately 1,300
barrels per day and the Ras Nowmah South well was restarted in
mid-March contributing approximately 90 barrels per day. The Al Roidhat
field remains shut-in due to marketing constraints and local issues.
The Company's inventory of crude oil (net of royalties and taxes) grew
to 65,000 barrels at the end of the quarter. The first lifting of crude
oil from Block 18 via the Ras Isa Terminal on the Red Sea occurred on
April 1, 2014, and consequently the Company will not be recording crude
oil sales for the first quarter of 2014.
The Company recently completed the Ras Nowmah South 2 well as a
successful oil well and the well is being placed on production. The
planned drilling of the Ras Nowmah 7 appraisal well remains suspended
due to constraints on service companies in mobilizing equipment in the
Calvalley is an international oil and gas company, with offices in
Calgary, Alberta, Canada, that operates its 50% working interest in
Block 9 of the Masila Basin, in The Republic of Yemen.
This press release may contain forward-looking information. Words such
as "may", "will", "should", "could", "anticipate", "believe", "expect",
"intend", "plan", "potential", "continue", and similar expressions may
have been used to identify this forward-looking information. These
statements reflect management's current beliefs and are based on
information currently available to management. In particular,
information relating to the forward drilling plan and the access to
alternative crude oil transfer facilities and the resumption of
production operations contain forward looking information.
Forward-looking information can involve significant risk and
uncertainties. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking
information including, but not limited to, operational risks,
availability of supplies and services, delays and interruptions in
drilling and completion activities for undetermined periods, changes in
general economic and market conditions and other risk factors. Although
the forward-looking information contained herein is based upon what
management believes to be reasonable assumptions, management cannot
assure that actual results will be consistent with this forward-looking
information. Investors should not place undue reliance on
forward-looking information. The forward-looking statements contained
herein are expressly qualified in their entirety by this cautionary
statement. The forward-looking information included in this press
release is made as of the date of this press release and Calvalley
assumes no obligation to update or revise it to reflect new events or
circumstances except as expressly required by applicable securities
SOURCE: Calvalley Petroleum Inc.
For further information:
email@example.com or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO