CALGARY, Oct. 10, 2012 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or the "Company") is pleased to provide an update on the drilling of the Ras Nowmah 4 appraisal well.
The Ras Nowmah 4 well is the second of two appraisal wells recently drilled offsetting the Ras Nowmah 2 discovery well that was drilled in 2010.
Drilling operations at Ras Nowmah 4 were completed near the end of September, 2012 with the well being logged, cased and cemented to the target depth of 1,475 m. Based on petro-physical analysis, the well encountered 9 meters of net oil column in the Qishn formation, the same producing zone as the Ras Nowmah 2 well. Completion operations were recently performed and the well was successfully put on a phase 1 production test on October 7th, 2012. The Phase 1 production test will allow the well time to cleanup and for the Company to determine the proper sized pump for long term production operations. The well is currently producing crude oil at a restricted rate of approximately 400 barrels per day with limited pressure drawdown. These initial results have indicated Ras Nowmah 4 is capable of producing at a higher rate.
Completion operations on the Ras Nowmah 5 well, which was drilled prior to the Ras Nowmah 4 well, and which encountered 11 meters of net oil column, will be performed after the contractor performs a remedial operation to ensure the integrity of the cement behind the production casing.
Average gross production volumes for the third quarter of 2012 are estimated to be approximately 4,700 bpd. Production volumes during the quarter were affected by heavy rains which damaged the road between Hiswah and the plateau and restricted the trucking of crude oil production from the plateau. Current production rates, excluding test production from Ras Nowmah 4, are approximately 5,500 - 5,700 bpd comprising Hiswah at approximately 2,300 bpd, Ras Nowmah 2 at approximately 2,100 bpd, and Al Roidhat at approximately 1,200 bpd.
The Company sold 160,056 barrels of crude oil in the third quarter 2012 at an average price expected to exceed US$110.00 per barrel. Calvalley's inventory of crude oil (net of royalties and taxes) at the end of the quarter is estimated to be 40,000-45,000 barrels.
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, delays and interruptions in operations and drilling activities for undetermined periods, availability of equipment and services required for production operations, adverse weather conditions affecting the ability to produce and deliver crude oil production and deliver services required for production operations, drilling and project activities, 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.
SOURCE: Calvalley Petroleum Inc.
For further information:
[email protected] or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO