Calvalley Petroleum Inc. : March 05, 2014 Calvalley Petroleum announces results for the fourth quarter and year ended December 31, 2013 and provides operations update

Calgary, Alberta, March 5, 2014 - Calvalley Petroleum Inc., (TSX: CVI.A)

Highlights

 Earnings in the fourth quarter of 2013 were $0.08 per share ($6.0 million) compared to $0.06 per share ($6.0 million) in the fourth quarter of 2012. For the year ended December 31, 2013 earnings were $0.28 per share ($23.2 million) compared to $0.27 per share ($ 25.7 million) for the previous year. Inventory of crude oil at the end of December 31, 2013 was approximately 29,600 barrels and represents an increase of 11,200 barrels from December 31, 2012.

 The Company's working interest share of production volumes before royalties and taxes averaged 2,520 barrels per day for the year representing a 4 per cent increase over the 2,430 barrels per day for the 2012. For the fourth quarter of 2013 production volumes were 2,390 barrels per day compared to 2,890 barrels per day in the prior period of 2012.

 During the fourth quarter of 2013 the Company sold an average of 2,460 barrels per day of crude oil compared to 3,250 barrels per day in the prior period of 2012. For the year ended December 31, 2013 crude oil exports have averaged 2,330 barrels per day compared to 2,510 barrels per day in the comparable period of 2012. For the fourth quarter of 2013, the average sale price received was $110.56 per barrel which represents a premium of $1.32 to the Dated Brent Crude price of $109.24 for the quarter. The product netback for the last quarter of 2013 was $41.15 per barrel, and for the year ended December 31, 2013, the netback of $42.13 per barrel represents a decrease of 6 per cent from $44.65 per barrel for 2012 reflecting both slightly lower realized prices for crude oil and higher operating costs.

 Funds flow from operations ("Cash Flow") for the fourth quarter was $0.10 per share ($8.0 million)

compared to $0.11 per share ($10.5 million) in the prior year period. For the year ended December 31,
2013 Cash Flow was $0.38 per share ($31.2 million) the same as $0.38 per share ($35.7 million) in the prior year period.

 Capital expenditures in the fourth quarter of $2.8 million include the costs of equipment and services for the current year drilling program and are up slightly from $2.0 million in the fourth quarter of 2012. Capital expenditures for the year of $9.6 million are up 41 per cent from capital expenditure of $6.8 million for 2012.

 During the fourth quarter the Company purchased for cancellation 515,100 shares at an average price of

$1.63 (CAD$1.71) per share under the Company's normal course issuer bid ("NCIB"). For the year ended December 31, 2013 the Company has purchased for cancellation a total of 1,344,000 shares at an average price of $1.62 (CAD$1.68) per share under the NCIB. On March 5, 2013 the Company completed the
purchase for cancellation of 15,000,000 million shares at a purchase price of $2.40 (CAD$2.47) per share
including transaction costs pursuant to an Offer to Purchase and Issuer Bid Circular dated 22 January,
2013.

 The annual "per share" calculations included in this release are based on 81,555,977 weighted average shares. The fourth quarter "per share" amounts are based on 78,269,091 weighted average shares. The Company had 78,021,826 shares outstanding at December 31, 2013.

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 Calvalley has a strong balance sheet with approximately $87 million in working capital at December 31,

2013. The working capital balance increases to $89 million with inventory of crude oil valued at current market value rather than cost.

 Subsequent to the interruption of transportation of crude oil to the Masila Export Pipeline System in late December 2013, the Company initiated trucking crude oil in early February 2014 to Block 18 and has transported over 40,000 barrels to date.

 The Company has initiated production from some wells in the Hiswah Field and started to empty storage tanks at Ras Nowmah and is optimizing production operations given the local conditions, which continue to be unstable.

 The Company is working with both Government and local groups to resolve the issues that are affecting transportation of crude oil to Block 51. Drilling operations have been suspended due to the inability of service companies to mobilize staff and equipment to Block 9.

Significant financial information is included in the table below and is discussed further in the Company's
Management Discussion and Analysis.

(1) See "Non-IFRS Measures" disclosure in December 31, 2013 MD&A filed on www.sedar.com

Calvalley's Management's Discussion and Analysis and Audited Consolidated Financial Statements for the year ended December 31, 2013 can be found for viewing by electronic means on The System for Electronic Document Analysis and Retrieval at www.sedar.com. They can also be found on the Company's website at www.calvalleypetroleum.com.

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.

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For additional information, please contact:

investorrelations@calvalleypetroleum.com

Edmund Shimoon, Chairman & CEO

Gerry Elms, CFO +1 (403) 297-0490

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