Hiswah

The reservoir at Hiswah is contained in the Saar-Naifa limestone which is located on a structural high trending northwest to southeast and is comprised of two culminations separated by a structural saddle. The northwest high is structurally higher than the southeast culmination where a gas cap is present.

In 2008, six wells were drilled in the Hiswah Saar-Naifa reservoir: five horizontal and one vertical well. In the northwest part of the pool, two of the horizontal wellbores (H25 and H26) will be used for water injection to evaluate the initial response of pressure maintenance through injection of water into the Saar reservoir. It is expected that facilities will be completed during 2009 to commence injection. The vertical (H23) well was drilled in early 2008 in the southeast part of the pool. A 94.1m core was recovered for analysis and incorporated into the simulation study. The remaining three horizontal wells (H24, H27, and H28) were drilled in the northwest, central, and southeast areas of the pool respectively for production.

The simulation study (completed by Schlumberger Canada Limited) of the Hiswah Saar-Naifa reservoir was completed during 2008 and identified additional reserves which can be recovered by improving pressure maintenance through the implementation of water and gas injection. Numerous scenarios were evaluated through the optimization process. Ongoing improvement in the simulation study will be used as the foundation for optimal full field development at Hiswah. For the pressure maintenance program, Calvalley drilled two water injection wells and started construction of water and gas injection facilities. Both injection facilities are expected to commence operation in the second half of 2009.

Al Roidhat

The Al Roidhat pool contains three Qishn oil bearing sands with permeabilities up to six darcies containing approximately 15 degree API oil. Currently, there are eight vertical wellbores which were drilled prior to 2008 and are all completed in the Qishn sands. These wells are equipped and ready to commence production upon finalization of a marketing agreement for heavier crude.

Figure 11- - Al Roidhat Oil Field, Wadi Amd.