Compass Venture Inc T.CVI.A

More Ruminates to Digest

[Jab2004]

Calvalley Petroleum Inc. Provides Operational Update and Status of the Central Processing Facility CALGARY, Aug. 29 /CNW Telbec/ - Calvalley Petroleum Inc., (TSX: CVI.A) Calvalley Petroleum Inc. (the "Company" or "Calvalley"), an international oil and gas exploration and production company based in Calgary, Alberta, is pleased to provide the following update regarding its operations on Block 9 in the Republic of Yemen. Calvalley owns a 50% gross working interest and is the operator of Block 9 under a production sharing agreement with the Government of Yemen. Calvalley holds 2,234 km(2) of land area in the prolific Sayun-Masila basin, of which only a relatively small area has been explored to date. Central Processing Facility ("CPF") Calvalley is pleased to announce that the Central Processing Facility (the "CPF") has been commissioned and crude oil production is currently flowing through the facility into a storage tank farm consisting of six 10,000 bbl tanks. It is anticipated that upon diverting all production from the temporary production facility to the CPF, the storage tanks from the temporary facility will be relocated to the Al Roidhat field. Following the relocation, it is anticipated that the Al Roidhat field will be put on to production and oil originating there from will be trucked to the CPF for processing. Additional Wells on Production In testing and completing the CPF, the Company has concurrently put three new wells onto production. Hiswah 5, 19 and Hiswah NE have come on-stream as the crude oil currently flowing through the CPF represents production that had not previously been included in the Company's overall production volumes. Pipeline Project The Company continues in its negotiations with the Ministry of Oil and Minerals, third party operators and other related governmental regulatory bodies in an effort to finalize all outstanding matters closely linked to project economics, including issues relating to tariffs, crude quality adjustments, and other commercial factors. The Company believes that these outstanding issues could be of a critical nature in the future and must be addressed and agreed upon to secure Calvalley's long term interests in the Republic of Yemen. The pipeline is of importance to both Calvalley and Yemen, and as such the Company intends to meet with Ministry and Government officials in the upcoming days and weeks with the aim of addressing all of the Company's concerns. The Company is dedicated to forging a prosperous and successful partnership with the Yemeni Government both in this endeavour and in all future operations and projects in Yemen.