Compass Venture Inc T.CVI.A

CVI.a announcement Oct 5th.

[GMJFAR]

Highlights: During the third quarter the Company had two product lifts totaling 150,000 barrels of crude oil (after royalty and taxes - "Company net"). In the second quarter the Company produced into inventory and there were no Company product lifts. The average sales price, based on dated Brent, for these sales is expected to be in excess of US$110 per barrel. Reduced inventories of crude oil (Company net) from approximately 71,000 bbls at June 30, 2011 to approximately 30,000 barrels at the end of the third quarter. Exited September 2011 with crude oil production volumes of approximately 5,900 (gross) barrels per day. Started production from the Ras Nowmah #2 well. Initiated blending of heavy crude oil production from three wells in the Al Roidhat field. Total average production volumes for the third quarter are expected to be approximately 4,200 (gross) barrels per day.Increasing production from historical levels of approximately 4,000 (gross) per day to approximately 5,900 (gross) barrels per day at the end of the quarter has been a major achievement given the challenging operating environment in Yemen. There are additional wells at Al Roidhat to bring on stream that provide the potential for the Company to further increase production up to approximately 7,000 (gross) barrels per day and opportunities exist to optimize production from the Hiswah field and from the Ras Nowmah #2 well - which is currently producing at a rate of approximately 2,100 (gross) barrels per day.The Company's plans in Yemen remain contingent on the availability of supplies and services which continue to be affected by both the level of security supplied by the current Government and resolving local disputes.With the excellent production capability of the Ras Nowmah #2 well the Company is continuing its efforts to ensure the security and safety of personnel in order to advance the drilling of an additional two development wells at Ras Nowmah and an exploration well before the end of the year.Calvalley is an international oil and gas company, with offices in Calgary, Alberta, Canada, that operates its 50% working interest in Block 9 of the Masila Basin, in The Republic of Yemen and its 100% working interest in the Gimbi and Metema Blocks of the Blue Nile Basin, in The Republic of Ethiopia.