TMX group

CALGARY, Aug. 25 /CNW Telbec/ - Calvalley Petroleum Inc. (CVI.A - TSX
Venture Exchange). Calvalley Petroleum, Operator and 50% working interest
owner of Block 9 in the Republic of Yemen, is pleased to announce that it has
received approval from the Ministry of Oil and Minerals for the commercial
development of Block 9.
The development area encompasses all of the Al Roidhat, Auqban, Hiswah,
Qarn Qaymah and Ras Noor discoveries, as well as a significant number of
additional prospects that will be drilled over the next several years. The
Company and its joint venture partners received approval to retain for
development approximately 63% of the 3,546 sq kms that was held previously
under the exploration phase. This very high level of retention represents one
of the largest percentages of conversion from exploration concession to
development area, to date, in the Republic of Yemen. The Development Area of
2,234 km2, more than 552,000 acres, is equivalent to almost 24 townships of
land by Canadian land standards. The development and production period extends
to 2025 with an optional five year extension.
Initial field development will be focused on the Hiswah oil field, which
was Calvalley's first discovery in Yemen and into which six wells have already
been drilled. The current development plan provides for production commencing
later this year by trucking to one of three export pipeline alternatives. The
Company intends to drill at least four more wells in the field prior to the
end of 2005. The initial phase of Central Processing Facilities (CPF) will
commence construction immediately for completion prior to year end. Hiswah
field development is expected to consist of approximately 25 wells, which
number may be adjusted as additional reservoir information is obtained from
new drilling and from the interpretation of the recently acquired 63 sq km of
3D seismic over the Hiswah field.
Late this year the Company intends to finalize plans for the construction
of a pipeline with sufficient capacity to transport production from early
development of other existing and future discoveries. It is anticipated that
expansion to the CPF and the export pipeline will be operational during the
4th quarter of 2006.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.

This Press Release contains certain information that may constitute
forward-looking statements under applicable securities laws. These statements
are subject to unknown risks and uncertainties that could cause actual results
to differ materially from those anticipated or implied in the forward-looking
statements.
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