CALGARY, April 3, 2012 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or the "Company") provides the following operations update.
Optimization projects at the Hiswah field have increased crude oil production resulting in gross production volumes for the last five days of the quarter averaging approximately 5,800 bpd for Block 9.
Production curtailments at Ras Nowmah for eleven days in March due to truck shipment security issues, together with a full production shut-down in February due to blockades around the Company's central processing facility and an unrelated strike by workers who operate the third party crude oil export facility negatively impacted average production volumes in the first quarter.
Average gross production volumes for the first quarter are estimated to be approximately 3,800 bpd with the Hiswah field contributing approximately 2,600 bpd and the Ras Nowmah field approximately 1,200 bpd.
The Company continues to focus on production optimization activities and has recently completed pump changes in the Hiswah field increasing average production volumes to more than 3,400 bpd for the last five days in March. Production from the Ras Nowmah field for the same five day period in March averaged approximately 2,400 bpd. Production from the Al Roidhat field is currently shut-in due to local issues.
The Company sold 206,957 barrels of crude oil in January 2012 at a price of US$112.85 per barrel, representing an average daily sales volume of 2,270 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 35,000 barrels.
Management priorities include resuming production in the Al Roidhat field (which has production capability in the 1,200 - 1,500 bpd range), additional production optimization activities at Hiswah and finalizing plans to start the development and exploration drilling program.
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.
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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.
For further information:
[email protected] or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO