Calvalley Preps for Production Testing at Yemen Well

Calvalley announced that its Qarn Qaymah-3 well reached total depth of 4,460 meters on February 25, 2011. A wellbore cleaning process was then undertaken to remove all drilling solids before commencing logging operations and production testing. The logging program is now underway and is expected to be complete on March 4, 2011. The production testing is expected to commence on March 8, 2011 and test results will be announced as they are made available.

As well, Calvalley recently completed all mechanical and civil work on the Truck Offloading Facilities, located in Block 51, and is currently completing the telecommunication and instrumentation components of the project. The project commissioning team expects to have the facilities in operation within the next month.

Calvalley also assured its investors that operations continue to be unaffected by recently reported unrest in the region.


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