This should drive the price higher
CALVALLEY ANNOUNCES APPROVAL OF NORMAL COURSE ISSUER BID
CALGARY, Sept. 14 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or the "Company") (TSX:CVI.A) is pleased to announce that the Toronto Stock Exchange ("TSX") has accepted its notice to make a normal course issuer bid ("NCIB") to purchase outstanding Class A Common Shares ("Common Shares") on the open market, in accordance with the rules of the TSX.
As per the TSX approval, Calvalley is authorized to purchase up to 7,841,792 Common Shares representing 10% percent of the public float of Common Shares of Calvalley. Unless Calvalley is utilizing a Block Purchase Exemption as permitted by the TSX, purchases are subject to a daily purchase restriction equal to 25% of the average daily trading volume of the Common Shares over the past six calendar months, or a maximum of 32,134 Common Shares per trading day. As of September 14, 2010, there are 97,979,292 Common Shares outstanding.
Calvalley is authorized to make purchases during the period of September 16, 2010 to September 15, 2011 or until such earlier time as the NCIB is completed or terminated at the option of Calvalley. Any Common Shares Calvalley purchases under the NCIB will be purchased on the open market through the facilities of the TSX at the prevailing market price at the time of the transaction. Common Shares acquired under the NCIB will be cancelled.
Calvalley's Board of Directors believes, from time to time, the market price of its Common Shares may not reflect their underlying value. The Company acquired 1,657,688 Common Shares at an average price of $1.93 per Common Share under its previous NCIB which expired on April 22, 2010. Calvalley's strong cash flow capability and debt-free balance sheet provide the opportunity to capitalize on the current valuation of Calvalley in the market which, in the Board's opinion, significantly discounts the value and potential of the Company's asset base.
Calvalley Petroleum Inc.
Calvalley Petroleum Inc. is an international oil and gas company based in Calgary, Alberta. The Company operates its 50% working interest in Block 9 in the Masila Basin of the Republic of Yemen and 100% working interest in the Gimbi and Metema Blocks in Ethiopia.