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
- 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 announced its intention to declare commerciality of Block 9 on June 19, 2005.
- 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.
- Calvalley initiated early oil production from Block 9, at a rate of approximately 1,000 barrels of oil per day (“bopd”), and also initiated construction of a central processing facility at Hiswah, in December 2005.
- Calvalley plans to construct a pipeline from Block 9 to the existing government-owned export line, Block 18, to the Ras Isa Terminal on the Red Sea; which, allow the joint venture to market significantly greater quantities of oil.
- 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.