Calvalley Petroleum shares rise as Yemen operations resume

Wed Feb 29, 2012 11:22am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

Feb 29 (Reuters) - Shares of Calvalley Petroleum rose as much as 14 percent on Wednesday, after the company resumed operations in Yemen's largest oilfield, where a strike had forced production and export to stop.

Workers from state-owned PetroMasila went on strike in the Masila oilfied, affecting operations of several international companies such as Norwegian oil firm DNO and France's Total.

On Feb. 14, Calvalley had said work stoppage would hurt production at the 7,000 barrels of oil per day Block 9, where it has a 50 percent working interest.

"It was only a temporay shutdown, so the impact on operations was minimal," said analyst Alex Klein of Dundee Securities.

Calvalley, which delivers crude oil from the Hiswah and Ras Nowmah oilfields into the Nexen-operated Masila export pipeline, said operations at the two fields are returning to normal.

Trucking of crude oil for export from the central processing facility in Block 9 to the truck offloading facility at Block 51 resumed on Tuesday morning, the company said.

Calgary-based Calvalley's shares, which have lost nearly two-thirds of their value in the last one year, were up 17 Canadian cents at C$1.69 on the Toronto Stock Exchange. The stock, one of the top percentage gainers on the exchange, earlier touched a high of C$1.73. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)