Calvalley Spuds and Drills, Discovers Gas and Oil in Yemen

Calvalley has completed drilling and has commenced testing of the Malik 1 exploration well on Block 9 in the Republic of Yemen. Additionally, the exploration well, Qarn Qaymah 2, was spudded on Dec. 6, 2007, and the evaluation well, Hiswah 22, has undergone an extensive coring program. As well, Calvalley has completed the evaluation of Engineering, Procurement and Construction Management (EPCM) bids for its export pipeline and, pending government approval, anticipates awarding the contract prior to the end of the year.
Malik 1 was drilled to 3,426 meters of total measured depth (3,168.6 meters of total vertical depth) to evaluate a large east-west trending structural closure that encompasses a thick stratigraphic succession having numerous reservoir-seal combinations. The well was spudded on July 27, 2007 and intersected the Qishn clastics, at a depth of 1,233 meters, which demonstrated excellent reservoir characteristics.
The reservoir zone, to 1,280 meters, displayed light brown oil staining and fair to good oil shows, with light yellow direct fluorescence, over a 14 meter interval. The fluorescence suggests the presence of a medium to light oil. Some oil staining was also present in drill cuttings from the underlying Saar limestone.
Drilling into the basement was conducted through the primary hole as well as through a deviated hole, in order to evaluate the potential for fractured basement production. Such basement drilling has proven to be successful in other blocks in the Masila basin. Gas shows were encountered in the basement of the primary hole, between 3,120 meters and 3,160 meters.
Image logs, run over the primary basement granite section, confirmed the presence of open fractures and the potential for a fractured basement play but testing of three fracture zones failed to recover hydrocarbons. The deviated hole penetrated 338 meters of granitic basement without encountering any additional significant hydrocarbon shows or fractures and this section of the well was subsequently abandoned.
Log analysis of the upper zones, by an independent third party, indicates the presence of four meters of hydrocarbon potential in the upper Qishn clastics, and two meters of hydrocarbon potential in the Upper Saar limestone. A service rig has been moved on to the Malik 1 location and is preparing to commence testing of both zones.



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