Calvalley Petroleum Spuds Third Yemen Well

Calvalley Petroleum has spud its third well on Block 9 in the Republic of Yemen. The Qishn 4 ("Q4") exploration well, the third well of a planned four well drilling program, spudded at 7:30 hours local time on July 25th. The Q4 well is situated approximately 75 km west of the Masila oil fields operated by Nexen and TotalFinaElf which are currently producing approximately 250,000 BOPD.

The Q4 well is expected to take 17 to 20 days to drill to its anticipated depth of 1500 meters. One other surface location Qishn 3 ("Q3") has already been prepared for drilling following the completion of Q4. It is anticipated that Q3 will spud September 1, 2003.

Calvalley is the operator of Block 9 and retains a 60% majority interest.