The Company operates a Central Processing Facility near the Hiswah field which processes and blends oil from all wells producing oil on Block 9.

Crude Oil Transportation Agreements

A critical component of Calvalley's future success is the ability to market all qualities of crude without delivery restrictions which limit production to reservoirs containing light, sweet crude. During 2009, Calvalley management focused on negotiating transportation agreements which would allow the Company to commence production from all existing and future discoveries on Block 9.

These efforts were rewarded in February 2010 with the execution of agreements which will enable Calvalley to activate shut-in wells in Al Roidhat and transport blended crude of 26° API or higher from Block 9 through the Masila System. Immediate production growth is expected to be realized in the third quarter upon the completion of the truck offloading facility. Calvalley expects to receive the Masila Blend price for its crude.

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Figure 20 - Yemen Block 9 and the existing export pipeline.

Figure 20 - Yemen Block 9 and the existing export pipeline.

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Figure 21 - Satellite image of Yemen Block 9 and the existing export pipeline.

Figure 21 - Satellite image of Yemen Block 9 and the existing export pipeline.

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Figure 22 - Yemen

Figure 22 - Yemen

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Figure 23

Figure 23

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Figure 24 - Storage tanks at the central processing facility

Figure 24 - Storage tanks at the central processing facility

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Figure 25 - Separator at Calvalley's central processing facility

Figure 25 - Separator at Calvalley's central processing facility

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Figure 26 - Calvalley's central processing facility, pipeyard and buildings - Block 9

Figure 26 - Calvalley's central processing facility, pipeyard and buildings - Block 9

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Figure 27 - Drilling Location in Yemen

Figure 27 - Drilling Location in Yemen