The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

CALVALLEY PETROLEUM INC. - DELIVERS FIRST OIL INTO MASILA EXPORT PIPELINE SYSTEM

Tuesday, April 12, 2011

CALVALLEY PETROLEUM INC. - DELIVERS FIRST OIL INTO MASILA EXPORT PIPELINE SYSTEM08:30 EDT Tuesday, April 12, 2011CALGARY, April 12 /CNW/ - Calvalley Petroleum Inc. (TSX: CVI.A)Calvalley Petroleum Inc. ("Calvalley" / "Company") is pleased to announce that it has commenced delivery of Block 9 production of crude oil into the Masila Export Pipeline System ("MEPS") through the Company's Truck Offloading Facilities ("TOF") located at Block 51.  Current deliveries utilize existing space in the Block 51 metering system.  This temporary arrangement will be in place until early May when the Company's own metering system will be fully functional.With the initiation of operations at the TOF, Calvalley is a now able to begin production of the first commercial oil from the Ras Nowmah and Al Roidhat fields, into the MEPS.As well, and despite the unsettled security environment in Yemen, Calvalley continues its activities, as close to normal as possible, with two drilling rigs and one service rig in operation.Completion of the TOF is a major milestone in Calvalley's program of increasing production, by bringing significant volumes of shut-in production on line, takes advantage of higher oil prices and market accessibility provided by the MEPS.  As a result, all of Calvalley's blended crude oil will receive the Masila Blend price which is benchmarked to Brent Crude pricing.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. Calvalley also operates its 100% working interest in the Gimbi and Metema Blocks of the Blue Nile Basin, in The Republic of Ethiopia.THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.This press release may contain forward-looking statements including, without limitation, financial and business prospects and financial outlooks, and such statements may be forward-looking statements which reflect management's expectations regarding future plans and intentions, growth, results of operations, performance and business prospects and opportunities. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue", and similar expressions 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, 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. Forward-looking statements and other information contained herein concerning the oil and gas industry and Calvalley's general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which Calvalley believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While Calvalley is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. For further information: investorrelations@calvalleypetroleum.com or +1 (403) 297-0490 Edmund Shimoon, Chairman and CEO Zacharie Magnan, Vice-President, Finance and Acting CFO