Calvalley Passes Test at Yemen Well

Calvalley Block 9, Yemen
(Click to Enlarge)

Calvalley announced additional test results of the Company's Ras Nowmah Oil Field discovery in the Republic of Yemen.

Additional test data were obtained utilizing a larger capacity downhole pump ("ESP") which was installed by the Company for this latest phase of testing operations. The well flowed at a stabilized rate of approximately 3,000 bbl/d of sweet crude (approximately 30 degree API) and no formation water with only 9.5% pressure drawdown to the maximum operational capability of the ESP.

Based on the pressure drawdown and build-up data, this 2nd phase of testing clearly indicates that the Ras Nowmah-2 well is potentially capable of producing at much higher flow rates. The test data were analyzed by an independent reservoir engineering firm, in Calgary, which resulted in a calculated flow rate in excess of 5,000 bbl/d at a 20% pressure drawdown.

As previously announced on August 16, 2010, the Ras Nowmah-2 well encountered 41 meters of gross oil pay with only the upper 15 meters of pay having been perforated for initial testing. Structurally, the Qishn Sands, which were the primary target zone, came in approximately 4 meters higher than expected.

Calvalley and its Joint Venture partners are strongly encouraged by this discovery and its potential for opening a new exploration front on Block 9. As a result, Calvalley is putting an aggressive drilling program in place to further delineate the Ras Nowmah Field discovery and to explore several other prospects in the vicinity of this discovery. Currently, the Company is in the process of preparing the Ras Nowmah-3 appraisal well location which is expected to spud in late September or early October.


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