Calvalley Spuds Yemanese Block 9

Calvalley Petroleum Inc. has spudded its first well on Block 9 in the Republic of Yemen. Calvalley, as operator holds a 60% interest in the 1.2 million acre exploration concession under the terms of a Production Sharing Agreement signed with the government of the Republic of Yemen in April of 1997.

The first exploration well, Q6 (the first well of a planned four well drilling program) spudded at 06:00 hours local time on June 6 and is currently drilling ahead. The Q6 feature is situated approximately 75 km west of the Masila oil fields operated by Nexen and TotalFinaElf which are currently producing approximately 250,000 BOPD. A significant number of leads and prospects have been identified on the Block.

Based on seismic data, originally acquired in 1996 and confirmed by a 200 km seismic program completed in March 2001 the Q6 well is located on a closed structure. The well is expected to take 17 to 20 days to drill to its anticipated depth of 1500 meters. The well is the first of a four well program planed by Calvalley to test four of the exploration prospects identified by the seismic programs. The site preparation for the second exploration well (Q5) is underway at the present time. The entire four-well program is expected to be completed by the end of the year.

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