Calvalley Announces Test Results of Al Roidhat 1 Well

Calvalley Petroleum announces the results of the production test on the Al Roidhat 1 well in Yemen. The Company engaged two independent third party engineering firms (Fekete Associates Inc. and Chapman Petroleum Engineering Ltd.), in order to adequately assess the test information from the Al Roidhat 1 well and to prepare a reserve evaluation.

The discovery well produced 14.2 degree API oil with a sulphur content of less than 0.5%, at a stabilized rate of 612 bbls/d with a 57% pressure drawdown. The independent engineering assessments concluded that the well is capable of producing between 750 and 1,000 barrels per day and that the final water cut associated with the production from the well is 0.3%. Reservoir pressure was observed by Fekete and Chapman to range from 1100 psi to 1150 psi. Chapman has established preliminary reserves utilizing the standards of National Instrument 51-101 ("NI-51-101"). Based on the test results from Al Roidhat 1 and analysis of log information from the Al Roidhat 2 and Al Roidhat 3 wells, it was concluded that the reservoir is of high quality with average net pay of 15 meters (gross interval of 35 meters), porosity in the 20% range and permeability in the hundred's of milliDarcies . Based on the existing three wells and an additional proposed infill well, Chapman established total proved Qishn Original oil in place ("OOIP") of 16.9 million barrels, with a recoverable volume of 4.2 million barrels, assuming average recovery factors recognized for the Qishn formation in this area. Additional probable OOIP values were also established for both the Qishn and Saar horizons at 11.8 million barrels with recoverable volume of 7 million barrels (see table below).

	                       Summary of Oil Reserves - Al Roidhat Pool
	    Description                 Original Oil-in-place    Recoverable Oil-in-
	    ---------------------------                                      place
	                                                (MSTB)               (MSTB)
	    Total Proved developed Non-Producing       13,270                3,318
	    Total Proved Undeveloped                    3,641                  910
	                                               ------                  ---
	    Total Proved                               16,911                4,228

	    Total probable                             11,848                6,982
	                                               ------                -----
	    Total Proved Plus probable                 25,759               11,210

It should be noted that while the reserves can be classified technically as proved, given that commerciality has not yet been declared on Block 9, under Canadian accounting and securities standards reserves must all be defined as probable. At this time Calvalley estimates that the Al Roidhat pool is approximately four to five sq km in size and that 15 to 20 development wells could be drilled in the Qishn formation over the next two years. The Company intends to production test the Saar horizon, in which hydrocarbons have been identified, as soon as the test equipment becomes available. After testing the deeper zones in the Al Roidhat 2 well the Company will establish the best method of blending the heavy oil from the Al Roidhat pool with production from the other existing discoveries on Block 9, including Auqban, Hiswah and Qarn Qaymah.

The Company is currently production testing the 2002 Auqban reef discovery and expects to be able to provide initial information within the next few weeks. It is anticipated that the next well on Block 9 will be spudded in mid-June after all necessary materials are on site. The 2004 2D seismic program of approximately 155 km is nearing completion with the last lines being acquired on top of the plateau.