Calvalley Petroleum has made a new oil pool discovery south of the existing Hiswah field in Yemen. The exploration well, "South Hiswah 1" encountered 32 meters of oil bearing reservoir in the Saar-Naifa formation and was verified by an independent petrophysical analysis.
Since the Saar-Naifa reservoir is being developed at the nearby Hiswah
field, the reservoir characteristics are well understood and a decision was
made to cement the lower portion of the vertical exploration well and kick off
and drill a horizontal well approximately 500 meters of open hole. Upon
completion, the well will be tested and put on production to nearby Hiswah
Additional seismic will be required to delineate and properly map the new
reservoir. This well represents the first of a serious of exploration
locations that will be drilled throughout the remainder of 2006 and into 2007
by the Block 9 Joint Venture.
- The first crude lifting of approximately 500,000 barrels by Occidental
petroleum was made in the month of August.
- A local Calgary engineering firm has been retained to carry out the
design and assist in procurement and construction of a 16 inch diameter
pipeline from Block 9 to Block 18.
- The construction of the Central Processing Facility is continuing.
- The second drilling rig for which a long term contract has already been
signed, is scheduled to start drilling on Block 9 by end of
October 2006. Its focus will be exploration and appraisal drilling
allowing the existing rig to focus on development of existing
discoveries on the Block.