Calvalley reported the successful completion and test results of its new Ras Nowmah Oil Field well, Ras Nowmah-2, in the Republic of Yemen. The well was successfully completed, in record time and under budget, in late July.

Ras Nowmah-2 has been initially tested at 1,227 bbl/d of approximately 30 API sweet crude and no formation water with only 4% pressure drawdown to the maximum capacity of the available down-hole pump. This was the largest pump available to the Company at the time of well completion. The well encountered 41 meters gross oil pay but only upper 15 meters of pay was perforated for this initial test.

Structurally, the Qishin Sands, which were the primary target zone, came in approximately 4 meters higher than expected. The pressure drawdown and build-up test indicated the well is capable of potentially producing at much higher rates. Based on these initially positive results, the Company has expedited the acquisition of a pump with significantly higher capacity. The new pump will be on location within several days, for the resumption of testing.

The initial test results have two significant implications for the future exploration and development of Block 9:

•Lighter oil -- Contrary to previous belief that Qishin structures in Block 9 contain only heavy oil, the Ras Nowmah discovery has proven that the Block 9 Qishin structures are similar to those in the Masila block. The success of Ras Nowmah has added a new and exciting exploration dimension to Calvalley's already rich portfolio of prospects inventory. As a result, both of the near-term and long-term exploration programs are expected to expand significantly. In addition, the lighter nature of the Ras Nowmah crude is expected to result in strong recovery factors, which is expected to positively impact the Company's total Block 9 reserves. •Ras Nowmah is situated along a prospective fairway where Calvalley has already identified several other Qishin structures. The success of Ras Nowmah-2 has reduced the geological risk of exploration drilling on these structures.

Tags: Calvalley Petroleum Inc.