Calvalley Petroleum Production Tests Hiswah-5 Appraisal Well

Calvalley Petroleum has successfully performed a production test of a horizontal appraisal well at Hiswah-5 well in Block 9 that further confirms the size and potential of the Hiswah Saar oil pool and identified a potential new oil pool in the Upper Qishn Sandstone.

The Hiswah-5 well was drilled with a vertical wellbore to a depth of 1372 meters in order to evaluate the oil-bearing Saar Formation. This vertical hole was used to gather reservoir data. Independent petrophysical analysis has determined that Hiswah-5 intersected approximately 20.4 meters of net 35 degrees API gravity oil pay and 7.3 meters of net natural gas pay, over a total 53.3 meter gross hydrocarbon column, with an average porosity of 14 percent and an average water saturation of 28 percent.

In addition to confirming the presence of oil in the Saar Formation, petrophysical analysis and good oil shows during drilling also confirmed the presence of 6.1 meters of net oil pay over an 11 meter gross oil column within the Upper Qishn Sandstone. The sandstone has average porosity of 16 percent and an average water saturation of 48 percent. The presence of oil in the Qishn Sandstone is a new and exciting development within the Hiswah Field and the Company will be evaluating the extent of the Qishn discovery with the upcoming 3D seismic survey and additional wells drilled later in 2005.

The Hiswah-5 production test was conducted over a 489 meter open hole, horizontal well section in the Saar Formation Carbonate reservoir with an electric submersible pump. After an initial clean-up flow and pressure build- up, the well was flowed for 48 hours at rates of up to 1,300 barrels of 350 API oil per day with an average flow rate of 980 barrels of oil per day and 400Mcf per day of natural gas. The well was then shut-in for the main pressure build-up period.

The production test and geological reservoir data at Hiswah-5 confirm the extent and volume of the Hiswah oil accumulation. Hiswah-5 is the third of several horizontal appraisal wells planned for the Hiswah oil pool. The drilling rig is currently being moved to the Hiswah-6 well location, approximately 2 kilometers northwest of the Hiswah-5 well and will be drilled as a directional well towards the south east.


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