Calvalley Petroleum Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported EBITDA of $10,129,000 against $10,219,000 a year ago. Operating income was $8,303,000 against $8,713,000 a year ago. Earnings were $6,709,000 or $0.07 per diluted share against $7,070,000 or $0.08 per diluted and basic share a year ago. Capital expenditures were $1,951,000 against $2,165,000 a year ago. Funds flow from operations was $8,775,000 or $0.10 per diluted and basic share against $8,862,000 or $0.09 per diluted and basic share a year ago. Cash flow from operating activities was $8,694,000 against $12,584,000 a year ago. Revenue from crude oil sales was $14,849,000 against $14,641,000 a year ago.

Calvalley Petroleum Inc. announced results from the drilling of its Ras Nowmah South exploration prospect. The well was drilled to a total depth of 1,530 meters and intersected the Qishn formation, on prognosis, at 1,369 meters. Based on drilling and petro-physical data, the well encountered 15 meters of gross oil pay (10.5 meters net) with 25% porosity in the Qishn formation. The well has been equipped with a down-hole pump and placed on production at a restricted rate of approximately 250 barrels per day of crude oil. Initial field tests of oil quality estimate the crude oil gravity at 19 degrees, which is to be confirmed by laboratory analysis. Consistent with other Qishn wells, the well will require some time to clean-up before diverting production to the central treating facility.

Calvalley Petroleum Inc. announced the commencement of drilling of the Ras Nowmah South prospect effective March 26, 2013. The Ras Nowmah South prospect is located on the Umm Er Radhuma Plateau on a trend between the Ras Nowmah and Al Roidhat pools, approximately 3 kilometers south of the Ras Nowmah 2 well, and aims to test the Qishn sands and the Saar carbonates. The primary target is the high porosity and permeability sands of the Lower Cretaceous Berriasian-Valanginian age Saar Formation carbonates and the basal sands of the Jurassic Granite Wash. The well is planned to be drilled to a total depth of 1,567 meters.