Calvalley Petroleum Completes Hiswah-8 and Spuds Hiswah-9 in Yemen

Calvalley Block 9, Yemen
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Calvalley Petroleum reports that the drilling rig was released on December 16th from the Company's sixth horizontal Hiswah well (Hiswah-8) on block 9 in the Republic of Yemen. The well was spudded on November 25, 2005. The well was drilled horizontally into the oil-bearing Saar-Naifa formation and is located approximately 250 metres east of the Hiswah-6 well. The well was drilled parallel to Hiswah-6, although in a northerly direction and was successfully drilled to 1,816 metres with the last 599 metres being an open hole in the pay zone. The well penetrated oil-saturated, porous, carbonate grainstones over much of its length.

Hiswah-9 was spudded on December 20, 2005 and is located approximately 275 metres west of the Hiswah-6 well. The well will be drilled in a similar fashion to the Hiswah-6,7 and 8 wells and is expected to be completed within the next two weeks.

Four containers shipped from Canada have arrived in Yemen containing all the pumps and related well production equipment for the Hiswah horizontal wells. Good progress is being made on the Hiswah Early Production Facility (EPF), which the Company anticipates completing, on schedule before the end of the first quarter.

At the present time, production from the Hiswah-6 well is running at about 2,000 bbls per day (bpd), net 1,000 bpd to the Company. This level of production is expected to be maintained for the next few weeks until de-bottlenecking is completed at the Safer unloading facility, on Block 18, when production will be increased gradually to an anticipated 10,000 bpd (net 5,000 bpd to Calvalley).


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