CALGARY, July 3, 2012 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or
the "Company") provides the following update for shareholders.
The Company is pleased to report the resumption of drilling activity on
Block 9 with the spud of its first development well, Ras Nowmah 5, on
June 30, 2012.
Over recent weeks Calvalley has been arranging for mobilization of a
drilling crew to operate one of the two drilling rigs that are situated
on Block 9. Drilling activity was suspended in the second quarter of
2011 when drilling crews of the service providers were evacuated from
Yemen due to security concerns. Throughout 2011 Calvalley maintained
operations on Block 9 and at its office in Sana'a, the capital of
The Company is very pleased that service companies that evacuated the
region are now returning to the country and restoring service
Ras Nowmah 5 is the first of two development wells planned to be drilled
offsetting the Ras Nowmah 2 discovery well that was drilled in 2010.
The Ras Nowmah 5 well, subject to unforeseen circumstances and delays,
is expected to complete drilling by the end of July 2012 after which
the well will be tested and placed on production, if successful.
On completion of the drilling of the Ras Nowmah 5 well, the drilling rig
will move to the second planned development location, Ras Nowmah 4.
Upon completion of the two development wells the Company plans to drill
several anomalies identified along the same plateau where Ras Nowmah is
Average gross production volumes for the second quarter of 2012 are
estimated to be approximately 5,000 bpd with the Hiswah field
contributing approximately 3,000 bpd and the Ras Nowmah field
approximately 2,000 bpd. Production from the Al Roidhat field (which
has production capability in the 1,200 - 1,500 bpd range) was shut-in
during the quarter due to local issues.
The Company sold 252,525 barrels of crude oil in the second quarter 2012
at an average price of US$112.90 per barrel, representing an average
daily sales volume of 2,775 bpd (Company share before royalties and
taxes) for the quarter. Calvalley's inventory of crude oil (net of
royalties and taxes) at the end of the quarter is approximately 17,000
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 Metema Block 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, delays and interruptions in
drilling activities for undetermined periods, 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