2007 Annual Report
Calvalley Petroleum Inc. is a Calgary, Alberta-based junior international oil and gas company focused on the exploration and development of the 2,234 km2 Block 9 in the Republic of Yemen where it is the Operator and a 50% working interest owner. Calvalley’s common shares are listed and posted for trading on the Toronto Stock Exchange under the symbol “CVI.A.”
Calvalley has made a number of significant oil discoveries in the Republic of Yemen over the past several years and initiated early production from Block 9 in the 4th Quarter of 2005. The Company is party to a Production Sharing Agreement, with the Ministry of Oil and Minerals of the Republic of Yemen, which permits the Company to explore for, and produce, oil and natural gas on Block 9 until 2025, with a possible 5 year extension thereafter. The Company is well financed, debt free, and continues to increase its exploration, development, and production activities at Block 9.
Calvalley is in a joint venture partnership with HoodOil Limited and Reliance Industries Limited, each of whom have a 25% working interest in Block 9.
Calvalley Milestones
- The Ministry of Oil and Minerals of the Republic of Yemen has agreed to allow Cavalley to construct an export line as far as Block S2 with the operator of that Block constructing the remainder of the line to Block 18
- Calvalley's oil production from Block 9 is at a rate of approximately 4800 – 5000 barrels of oil per day ("bopd")
- To date, 51 wells have been drilled – All have encountered hydrocarbons – 4 officially abandoned
- Calvalley has up to 16 wells that are currently producing
- Calvalley shot 768 kilometers of new 2D seismic data in 2007 and reprocessed 1,124 kilometres of vintage seismic data. Additionally, 876 kilometres of 2 D seismic shot in 2006 was processed
- Publicly traded Canadian company, since 1996, with original listing on the Montreal Stock Exchange.
- Class A Common Shares (CVI.A) listed on TSX Venture Exchange on October 1, 2001 and moved to the Toronto Stock Exchange on November 4, 2005, under the same symbol.
- Calvalley received approval, in August 2005, for the conversion of Block 9 from an “exploration block” to a “development area,” which gave the Company the rights to produce and sell oil, natural gas liquids and natural gas from Block 9 for a twenty-year period, with a possible five-year extension beyond 2025.
- Block 9 is part of the prolific Sayun-Maila basin that has a proven hydrocarbon resource base.
- To date, five of the seven exploration wells drilled in Block 9 have been successful.