Press release from CNW Group
Calvalley Petroleum Inc. - News Release
Wednesday, October 05, 2011
CALGARY, Oct. 5, 2011 /CNW/ - Calvalley Petroleum Inc., (TSX: CVI.A) provides the following update for shareholders:
During the third quarter the Company had two product lifts totalling
150,000 barrels of crude oil (after royalty and taxes - "Company net").
In the second quarter the Company produced into inventory and there
were no Company product lifts.
The average sales price, based on dated Brent, for these sales is
expected to be in excess of US$110 per barrel.
Reduced inventories of crude oil (Company net) from approximately 71,000
bbls at June 30, 2011 to approximately 30,000 barrels at the end of the
Exited September 2011 with crude oil production volumes of approximately
5,900 (gross) barrels per day.
Started production from the Ras Nowmah #2 well.
Initiated blending of heavy crude oil production from three wells in the
Al Roidhat field.
- Total average production volumes for the third quarter are expected to be approximately 4,200 (gross) barrels per day.
Increasing production from historical levels of approximately 4,000 (gross) per day to approximately 5,900 (gross) barrels per day at the end of the quarter has been a major achievement given the challenging operating environment in Yemen. There are additional wells at Al Roidhat to bring on stream that provide the potential for the Company to further increase production up to approximately 7,000 (gross) barrels per day and opportunities exist to optimize production from the Hiswah field and from the Ras Nowmah #2 well - which is currently producing at a rate of approximately 2,100 (gross) barrels per day.
The Company's plans in Yemen remain contingent on the availability of supplies and services which continue to be affected by both the level of security supplied by the current Government and resolving local disputes.
With the excellent production capability of the Ras Nowmah #2 well the Company is continuing its efforts to ensure the security and safety of personnel in order to advance the drilling of an additional two development wells at Ras Nowmah and an exploration well before the end of the year.
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 and 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:
firstname.lastname@example.org or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO