SOURCE: Tri-Valley Corporation

June 01, 2007 11:15 ET

Tri-Valley Now Drilling Fifth Diatomite Test Well at Temblor Valley West

BAKERSFIELD, CA--(Marketwire - June 1, 2007) - Tri-Valley Corporation (AMEX: TIV) has begun drilling its fifth Diatomite test well at its Temblor Valley West property in the South Belridge Oilfield some 40 miles west of its Bakersfield, California headquarters. The four such previous wells recently drilled by Tri-Valley have shown all the three main oil-producing formations extending nearly one kilometer, or more than a half mile, further west of the original mapped boundary, potentially adding millions of barrels of newly discovered oil in place on Tri-Valley's lease hold.

If this fifth well also encounters hydrocarbon bearing zones, as the previously drilled four wells have, it will extend the boundary yet another half a mile. Even after nearly 100 years of oil production from the Tulare, Etchegoin and Diatomite formations at the shallow depths of between 450 feet and 2,500 feet, the South Belridge Oilfield is still the nation's third highest producing oilfield outside of Alaska and Tri-Valley may provide a meaningful addition once it develops its 700-acre lease hold.

Tri-Valley is now water-flooding the Etchegoin zone and steam-flooding the Diatomite section. The Company is projecting an additional 2.5 to 4 million recoverable barrels of oil in the Etchegoin zone from its current water-flood program which is now underway. Based on actual production of the Diatomite zone on neighboring properties, Tri-Valley speculates it could potentially recover in the range of 32 million barrels of oil from that section on its property.

The current well is being drilled by Tri-Valley subsidiary, Great Valley Production Services, LLC, and is using its newly refurbished rig number 105, one of California's largest production rigs which is now reconfigured to also drill to the depth of up to 8,000 feet. GVPS has two additional rigs being refurbished to bring the total rigs in its fleet to five production and drilling rigs. Tri-Valley also has another subsidiary, Great Valley Drilling Company, LLC which owns a 10,000-foot drilling rig in Nevada which is being contracted to other operators for drilling either petroleum or geothermal wells.

The steaming in the Diatomite zone of Tri-Valley's first test well is underway with the Company's own steam generator, soon to be followed by larger capacity models now being refurbished by GVPS to meet California air quality specifications. Ultimately, all five test wells will be subjected to cyclic steaming and the data used to design a comprehensive program for the entire lease hold.

"Tri-Valley has overcome numerous obstacles and delays to implement its exploitation of Temblor Valley West to build production, revenue, reportable reserves and share value. Now that Temblor development is under way, Tri-Valley will also begin drilling on its Pleasant Valley lease hold in the Oxnard Oilfield to further accelerate production build up," said F. Lynn Blystone, president and chief executive officer.

The company has been in business as a successful operating company since 1963, and has been a full reporting 12 (g) publicly traded Delaware Corporation since 1973. Tri-Valley Corporation stock is publicly traded on the American Stock Exchange under the symbol "TIV." Our company website, which includes all SEC filings, is www.tri-valleycorp.com.

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 March 31, 2007, and the annual report on Form 10-K for the year ended December 31, 2006.

Contact Information

  • Contact:
    F. Lynn Blystone
    President & CEO
    1-800-579-9314