SOURCE: Tri-Valley Corporation

September 21, 2006 13:03 ET

Tri-Valley Commences Operations on Second Temblor Valley Oil Well

BAKERSFIELD, CA -- (MARKET WIRE) -- September 21, 2006 -- Encouraged by finding even more oil saturated intervals than targeted in its first Temblor Valley well, the Lundin-Weber D-350-30, Tri-Valley Corporation (AMEX: TIV) has commenced operations on a step out well some 3,200 further west to expand field limits.

Targeting a total of 260 feet of oil saturated intervals in the Tulare, Etchegoin and Diatomite formations, the L-WD-350-30 found about 450 feet and the well is being prepared to hydraulically fracture the Diatomite zone as soon as the Halliburton frac unit comes available sometime this month.

Tri-Valley's Rig No. 103 is moving over to the next location to begin drilling the second well through the same three zones into the Diatomite section which is becoming a major producer in the South Belridge Oilfield that Temblor Valley adjoins.

"The Temblor Valley property was originally acquired and marginally developed in 1924 with all production coming from just the Etchegoin formation. Neither the prolific shallow Tulare nor the more extensive Diatomite have been produced and similar properties in the area have achieved impressive production rates from those zones when densely drilled," said Joseph R. Kandle, president of Tri-Valley Oil & Gas Co. and Great Valley Production Services LLC, both operating subsidiaries of Tri-Valley Corporation.

Because of previous wells that have penetrated the Diatomite at the new location area, Tri-Valley is confident it will encounter the formation which can now be produced abundantly with modern recovery techniques.

"We believe the 700 acre Temblor Valley property can accommodate hundreds of wells, all using modern recovery technology that has proved successful in the adjoining oil field for very long life production. Even the modest Etchegoin wells on our lease have been producing over 80 years so we are excited as we begin our drilling campaign to develop this property to reward our shareholders and projects partners," said F. Lynn Blystone, president and chief executive officer.

The Company is in its 43rd year of business as a successful operating company and for 32 years has been a full reporting 12 (g) publicly traded Delaware Corporation. Tri-Valley Corporation stock is publicly traded on the American Stock Exchange under the symbol "TIV" in the United States and is also traded in Europe on the Frankfurt Stock Exchange under the symbol "TVC WKN 911919." Our company websites, which include all SEC filings, are www.tri-valleycorp.com and www.tri-valley.de.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements which includes such words and phrases as exploratory, wildcat, prospect, speculates, unproved, prospective, very large, expect, potential, etc. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in the company's quarterly report on Form 10-Q for the quarter ended June 30, 2006, and the annual report on Form 10-K for the year ended December 31, 2005.

Contact Information

  • Contact:
    F. Lynn Blystone
    President & Chief Executive Officer
    1-800-579-9314
    Email Contact