Calvalley Petroleum to Abandon Daysah-1 Well in Yemen

Calvalley Petroleum reports that the Daysah-1 exploration well that spudded on July 7th has been abandoned after having encountered non-reservoir quality rock despite encouraging oil shows. The well was drilled to a total depth of 1878 meters including penetration of the basement. Notwithstanding being encountered structurally higher than expected, the target Saar-Naifa formation (main oil bearing zone at Hiswah) did not have good reservoir quality (poor porosity and permeability) to contain commercial quantities of oil. However, the presence of oil suggests that should reservoir quality develop, commercial oil accumulation can be accomplished in a large enough structure.

The drilling rig is now being moved to the 2002 Auqban oil discovery in order to drill the Auqban-2 appraisal well, located approximately one km south of the Auqban-1 location and about six kilometers west of the Daysah-1 well. The results from the Daysah-1 well will augment our geophysical understanding and will help considerably in the appraisal of the Hiswah pool, as well as, the Auqban delineation well. In addition, wireline log information has been submitted to a third party for petrophysical analysis in order to better understand the Daysah reservoir.

The 3D seismic acquisition over the Hiswah Field has been completed ahead of schedule and on budget. Processing of the data will be initiated shortly and will take about 6 weeks to be completed, after which geophysical analysis of the processed information will begin. This 3D program will form the basis for the full field development of the Hiswah pool to be initiated later this year.