Calvalley Says Al Roidhat Appraisal Well Successful

Calvalley Petroleum has drilled a successful appraisal well in the Al Roidhat pool in Yemen.

The Al Roidhat-2 Appraisal well, which spudded March 20, 2004, encountered 17 meters of net oil column within 35 meters of oil bearing Qishn sands. The well was cased with 9 5/8" casing for future perforation and production. Drilling has resumed in order to investigate the potential for oil in other deeper formations including the Saar, Naifa, Kohlan and the basement. It is expected that the Al Roidhat-2 drilling will be completed about April 7th at which time the rig will be moved to the Al Roidhat-3 Development well location, for which site preparation has been completed.

The wells currently being drilled in the Al Roidhat pool are part of the necessary requirements for the company to declare commerciality. Similar programs will be initiated in the coming months in the Hiswah, Auqban, Al Hedba and Qarn Qaymah discovery pools.

Additionally the Company announces that its partner Reliance Industries Limited has completed the exercise of its option to acquire an additional 5% in Block 9 and the payment of US$2,500,000 received. This option was granted to Reliance in 2001 as part of its original Joint Venture commitment. As a result of this final option exercise, Calvalley holds a 50% working interest and is the Operator of the Block.