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.
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.