Substantially all of Calvalley's crude oil production in 2009 and 2008 came from the Hiswah oil field, which produces high-quality, lighter crude oil that is sold at prices comparable to the Dated Brent crude oil reference price. All of the Company's crude oil production was trucked more than 250 kilometres to the Safer Exploration and Production Operations Co. processing facility on Block 18, where the crude oil was processed and shipped via pipeline to the Ras Isa marine terminal facility for export. During 2009, the Company's working interest oil production averaged 2,160 barrels of oil per day (bopd) (2008 - 2,261 bopd).

Production during the first quarter of 2009 recovered from the levels of the fourth quarter of 2008 as shut-in production came on-stream as pumps became available. Fourth quarter 2008 production also suffered due to flooding during October which essentially shut in the Hiswah field for four days. Production decreased during the second quarter of 2009 because the facility through which the Company sells its oil restricted the volumes of oil it would accept from Block 9. The restriction resulted from the facility seeking to achieve a target sulphur content in the oil blend exiting the facility. Sulphur content had been increasing due to decreased production from other fields feeding the facility. The Company shut-in certain higher-sulphur producing wells to meet the requirements of this externally imposed restriction.

In February 2010, the Company finalized certain transportation agreements which will utilize alternate facilities at Block 51 and Block 14. Once shipments to Block 51 commence, the Company expects these delivery restrictions to end. Notwithstanding the above, the Company's working interest oil production has improved and in February 2010 averaged 2,268 bopd.

The following table sets forth the Company's production and sales information for the periods indicated:

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Figure 28 - Production and Sales Information Table

Figure 28 - Production and Sales Information Table

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Figure 29 - Calvalley employee taking a sample of condensate production at Qarn Qaymah

Figure 29 - Calvalley employee taking a sample of condensate production at Qarn Qaymah