Calvalley, as the Operator and 60 percent interest holder in Block 9, commenced drilling of the first well of a four well program on June 6, 2002. The well, Q-6, was drilled to a total depth of 1460 meters. Open hole logging was carried out over the total depth of the well. The logs revealed a net oil column of approximately 30 meters and a 70 meter transition zone. After evaluation of the logs, an election was made by the Joint Venture partners to case the well with seven inch production casing, based on the encouraging results.
The Lower Cretaceous Saar limestones were penetrated at 1152 meters and high quality oil shows were encountered on the mud shakers and during the mud logging program throughout the top 100 meters of the formation. Detailed analysis of the Q-6 discovery is currently under way, with perforation and testing of the Saar formation scheduled for mid-July, utilizing a down-hole electric pump in order to simulate normal production practices in Yemen.
At the present time the drilling rig is moving to the second exploration well (Q-5), which is located approximately twelve kilometers away from Q-6 and is expected to commence drilling on July 1, 2002.
Calvalley is very pleased with the results of this first well, particularly as the estimated cost is expected to be at least 20 percent below the original $US2,000,000 that was budgeted.
Russia has left the list of 33 largest holders of US government bonds, after the country disposed of at least a third of remaining bonds