CALGARY, June 30, 2011 /CNW/ - Calvalley Petroleum Inc. (TSX: CVI.A)
Calvalley Petroleum Inc. ("Calvalley" or the "Company") provides the
following update for shareholders.
Given the Company's strong financial position and the current
geopolitical situation in its Yemen core area, the Company is focusing
on both organic growth in Yemen and growth through potential
acquisitions in order to expand and diversify its production base.
Recent events in Yemen have resulted in challenges to the Company's
operations in the area. Management has responded to these challenges by
developing new marketing arrangements and working with local and
government officials to ensure plans for growth in production
capability continue to progress.
During the second quarter production operations continued at restricted
levels to build inventory volumes both at the Company's Central
Processing Facility ("CPF") and at the Nexen operated export terminal.
Calvalley's crude oil purchaser was unable to lift crude oil from the
Red Sea terminal in the second quarter due to a pipeline disruption.
The Company has recently started delivering crude oil blended from the
Hiswah and Ras Nowmah fields into inventory at the Nexen operated
Masila Export Pipeline System ("MEPS") through the Company's recently
completed Truck Offloading Facility.
The Company is also in the process of finalizing a term marketing
agreement to undertake crude oil sales of its Malik Blend
production. Deliveries of crude oil under these marketing arrangements
are anticipated to begin a regular pattern of future crude oil liftings
during the third quarter.
To optimize the production potential of its current wells, Calvalley is
planning to install new facilities at the Company's CPF to ensure the
crude oil quality meets the delivery specifications at the Nexen export
The Company strongly believes that the underlying asset quality of the
current Yemen assets has potential for significant growth in
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 and its 100%
working interest in the Gimbi and Metema Blocks of the Blue Nile Basin,
in The Republic of Ethiopia.
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.
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:
firstname.lastname@example.org or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO