SOURCE: Tri-Valley Corporation

October 09, 2006 11:36 ET

Tri-Valley Drills Second Temblor Valley Development Well

BAKERSFIELD, CA -- (MARKET WIRE) -- October 9, 2006 -- Tri-Valley Corporation (AMEX: TIV) is moving quickly in its Temblor Valley West development drilling campaign and is drilling the second vertical well with the primary objective being the Diatomite formation.

Located some 40 miles west of Bakersfield, California on the western flank of the billion-barrel South Belridge Oilfield, Tri-Valley's 700-acre lease sits high to the main oilfield structure.

"Leases at South Belridge are very densely drilled, sometimes as many as 4-5 wells to the acre in the diatomite zone, and we are just beginning our exploitation of our lightly drilled property. We have only 49 wells that came with the property, and none of those are completed in the Diatomite formations, leaving this entire upside for Tri-Valley shareholders and drilling partners," said F. Lynn Blystone, president and chief executive officer.

He noted that the operating subsidiary, Tri-Valley Oil & Gas Co., is cleaning out the recently drilled first well into the Diatomite, which had been hydraulically fractured with 2,300 barrels of fluid and 500,000 pounds of frac sand by Halliburton a few days earlier. Once the frac fluid is expelled, the oil can flow into the well bore for recovery typically lasting several decades for wells in that area.

So far Tri-Valley has at least three oil saturated formations to exploit: The first well identified approximately 50 feet of heavy oil in the shallow Tulare interval, 25 feet of higher gravity Etchegoin zone from which the existing wells have produced as long as 80 years and some 315 feet of Diatomite saturated with lighter oil. The Company is permitting a multiple well program on Temblor Valley property to boost production, revenue and reportable reserves to build share value and partner returns.

Tri-Valley is conducting this drilling campaign with its own rigs and crews operated by its subsidiary, Great Valley Production Services LLC. Great Valley owns eight production rigs of which five are being refitted to also enable them to drill wells up to 8,000 feet in depth. This will enable Tri-Valley to steadily accelerate a densely spaced drilling campaign to maximize multiple zone recovery and ramp up daily production.

The Company will conduct bus tours of the Temblor Valley West property and operations for shareholders after its Annual Shareholder Meeting to be held in Bakersfield on October 28.

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 include 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