Calvalley Petroleum Inc., (TSX: CVI.A) provides drilling and operations update

T.CVI.A
Calvalley Petroleum Inc., (TSX: CVI.A) provides drilling and operations update

CALGARY, July 3, 2013 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or the "Company") provides the following update for shareholders.

Average gross production volumes for the second quarter of 2013 are estimated to be 5,000 bpd with the Hiswah field contributing 2,500 bpd, the Ras Nowmah field 1,650 bpd, the Al Roidhat field 690 bpd and Ras Nowmah South field, which came on production in early May, 160 bpd. Production in the quarter was reduced at both Ras Nowmah and Ras Nowmah South by approximately 220 bpd for the quarter due to security related issues. Total production capability including production from shut-in wells at Hiswah and Al Roidhat is approximately 6,000 bpd.

The Company sold 213,934 barrels of crude oil in the second quarter 2013, representing an average daily sales volume of 2,350 bpd (Company share before royalties and taxes) for the quarter. Calvalley's inventory of crude oil (net of royalties and taxes) at the end of the quarter is approximately 35,000 barrels.

The Company recently completed the drilling of the Ras Nowmah North prospect. The well was drilled to a total depth of 1,638 meters targeting the Qishn and Saar/Naifa formations. The well encountered 16.5 meters of Qishn S1 sand with a net pay zone of 3.4 meters and a water saturation of 50%. Based on an independent petrophysical evaluation, the well will not produce commercial volumes of hydrocarbons, accordingly, the zone of interest was abandoned and the well bore was suspended for future use as a a water disposal well.

The Ras Nowmah North prospect was the third of five top prospects identified on the plateau. The Ras Nowmah South prospect, drilled earlier this year and put on production in early May 2013, discovered a new pool of crude oil in the Qishn formation and was the first new prospect drilled on the plateau since the original discovery of the Ras Nowmah field in 2010. The Ras Nowmah South discovery well has been producing consistently at approximately 250 bpd and plans are being made to optimize production from this well over the coming months. Two additional appraisal wells have been identified for drilling which will aid in assessing the size and extent of this new discovery.

The Company is currently planning to move the drilling rig to the fourth prospect identified on the plateau at Sueda. Drilling plans also include the drilling of the fifth prospect, two appraisal wells in the Ras Nowmah field and two appraisal wells in the Ras Nowmah South field.

Calvalley is an international oil and gas company, with offices in Calgary, Alberta, Canada, that operates its 50% working interest in Block 9 of the Masila Basin, in The Republic of Yemen.

Forward-looking Statements
This press release may contain forward-looking statements. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue", and similar expressions may have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, operational risks, availability of supplies and services, potential delays or changes in plans with respect to exploration or development projects or capital expenditures, delays and interruptions in drilling and completion activities for undetermined periods, success in drilling activities, changes in general economic and market conditions and other risk factors. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date of this press release and Calvalley assumes no obligation to update or revise them to reflect new events or circumstances except as expressly required by applicable securities law.


SOURCE: Calvalley Petroleum Inc.

investorrelations@calvalleypetroleum.com or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO

Copyright CNW Group 2013

Rate this press release
0 stars
v
Usefulness

Clarity

Credibility
Add to favourites icon Add to favourites