Calvalley Reveals Test Results of Yemen Discovery

Calvalley Petroleum has temporarily suspended the testing of the Al-Roidhat-1 Qishn oil discovery pending the delivery of appropriate down-hole production equipment.

The Al-Roidhat-1 discovery well was drilled in August and cased to a total depth of 1159 meters and intersected a 49 meter oil column in the Upper Qishn Clastics. Independent petrophysical analysis has confirmed 31.7 meters of net oil pay through the S1, S2 and upper S3 reservoir sands. The completion program commenced on September 23, with Baker-Atlas perforating approximately 13 meters of the reservoir.

Schlumberger Oil Field Services commenced production testing utilizing a down-hole electric submersible pump (ESP). The pump utilized was inadequate to lift the drilling fluids recovered from the formation. Schlumberger is making arrangements for the delivery of the required equipment, estimated to arrive in Yemen within three weeks, at which time a new testing proposal will be submitted. The test has confirmed the presence of oil and indicated that the formation pressure is approximately 1,050 psi.

The company also announces that it's Joint Venture Partner has given notice of its desire to exercise an option to increase its interest in the Block by an additional 10% for consideration of US $5 million.