CALGARY, March 13 /CNW Telbec/ - Calvalley Petroleum Inc. (TSX: CVI.A)
Calvalley Petroleum Inc. ("Calvalley" or the "Company"), an international
junior oil and gas company based in Calgary, Alberta, is pleased to announce
Drilling of Qarn Qaymah 2 Completed
Calvalley spudded the Qarn Qaymah 2 appraisal well on December 6, 2007.
The primary objectives of this well were to appraise the Qarn Qaymah 1 basal
Kohlan sandstone gas/condensate discovery and to explore for hydrocarbons
within the large, underlying granite basement closure. Secondary objectives
existed in the Saar-Naifa carbonates. The well was drilled to a total measured
depth of 3,975 metres.
As previously announced on January 14, 2008, oil and gas shows were
encountered in Qarn Qaymah 2 within the lower portion of the Saar and Naifa
formations, which represent secondary zones of interest in the Qarn Qaymah 2
well and for future wells in Qarn Qaymah area. The Kohlan sandstone, which was
a primary objective and sits immediately above the granite basement, was
penetrated at a measured depth of 3,178 metres. A good natural gas show was
displayed over a twelve metre sandstone interval. Gas and significant
condensate were previously recovered on a short term test of the Kohlan
sandstone in the Qarn Qaymah 1 well. Qarn Qaymah 2 is located 2.1 kilometres
to the east of Qarn Qaymah 1.
The casing shoe was set 43 metres into the granite basement at a measured
depth of 3,233 metres and drilling continued into the underlying granite
basement. The well was deviated at an inclination of up to 72 degrees towards
the south to enable Calvalley to drill towards seismic features that may
represent potential fracture zones within the large potential basement
closure. An additional 747 metres of granite was penetrated below the casing
shoe, giving a lateral offset from the casing shoe of approximately 570 metres
to the south. The total 785 metre granite basement intersection in Qarn
Qaymah 2 equates to a true vertical basement section of 380 metres total
vertical depth in the well bore. This demonstrates the presence of a
structural closure with hydrocarbon shows in several fracture zones.
Six fracture zones, which are associated with faults or flexures within
the granite basement, were encountered with associated hydrocarbon shows.
Strong gas kicks were encountered soon after penetrating the granite basement
and gas-condensate shows were associated with the first two fracture zones. As
the well was deepened, oil was observed in good quantity over the shaker and
mud pit from the four fractures. The mud weight indicates the reservoir
pressure may be in excess of 5,000 psi.
Qarn Qaymah 2 has encountered excellent hydrocarbon indications while
drilling and, depending on test results, may be the first hydrocarbon
discovery within the granite basement zone of Block 9. The Qarn Qaymah granite
basement is a large structural high and could have a significant volumetric
hydrocarbon potential. Other discoveries have been made in the granite
basement of the Masila basin which have achieved commercial productivity. The
drilling rig will be demobilized following the completion of logging of the
granite basement section and a service rig will be moved on site to commence
extensive testing of various hydrocarbon horizons within the well.
The well has demonstrated the potential viability of the granite basement
structure in Block 9 as another potential hydrocarbon reservoir and additional
exploration is intended to be directed toward similar structures.
Calvalley is listed on the Toronto Stock Exchange, trading under the
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: Renmark Financial Communications Inc.: Neil
Murray-Lyon, email@example.com; Barbara Komorowski,
firstname.lastname@example.org; (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com; Source: Edmund M. Shimoon, CEO, Calvalley Petroleum
Inc., (403) 297-0491, Fax: (403) 297-0499