Calvalley Petroleum Inc. Announces Status of its Yemen Pipeline Project



    CALGARY, Aug. 14 /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 following information resulting from its ongoing
discussions and planning with respect to a pipeline to transport crude oil
from its Block 9 property to a receiving point located at Block 18 in the
Republic of Yemen.

    Discussions Concerning the Pipeline from Block 9 to Block 18

    Calvalley, a third party operator located on an adjacent block in Yemen
(the "Third Party Operator"), and the Ministry of Oil and Minerals have
recently commenced discussions to revise plans for a 245 kilometre 16 inch
pipeline from Block 9 to a point within Block 18 for connection to an existing
major export line from Block 18 to the Ras Issa terminal at the Red Sea.
    It has been previously reported that Calvalley would be responsible for
building and financing the entire pipeline and it was anticipated that other
third parties along the pipeline right of way would connect to Calvalley's
pipeline system.
    Calvalley, the Third Party Operator and the Ministry of Oil and Minerals
of the Republic of Yemen are now currently negotiating an arrangement whereby
Calvalley will build and finance only 145 kilometres of pipeline from Block 9
to a point within a block operated by the Third Party Operator. In turn, the
Third Party Operator will be responsible for financing the balance of the
approximately 100 kilometres of pipeline required to connect to Block 18.
    Calvalley, the Third Party Operator and the Ministry of Oil and Minerals
are committed to continuing to coordinate their efforts for the construction
of the proposed pipelines. The reduced distance in respect of Calvalley's
portion of the pipeline will significantly reduce Calvalley's construction
cost commitments.
    Calvalley will continue to use best efforts in order to expedite the
construction of the pipeline and is committed to working diligently with all
parties toward the finalization of all issues relating to the project.

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

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