Calvalley Farms Out Stake in Yemen Property

Calvalley Petroleum has farmed out an additional 5% working interest in exchange for $US 2.5 million, to its Yemen partner, Hoodoil Ltd. under an option agreement that was granted in 2001.

Calvalley has closed the $500,000 sale of its remaining Canadian operated oil and gas properties, effective December 1, 2003. The company is now positioned to focus 100% of its efforts on the development of Block 9 in the Republic of Yemen. The Company is the operator and 55% majority owner of Block 9 on which it has drilled four successful exploration wells over the past two years.