SOURCE: Tri-Valley Corporation

August 10, 2007 09:00 ET

Tri-Valley Featured in Investor Magazine

BAKERSFIELD, CA--(Marketwire - August 10, 2007) - Tri-Valley Corporation (AMEX: TIV) is one of four companies featured in the cover story of Oil and Gas Investor magazine's upcoming September issue. According to Brian Toal, Senior Financial Editor for the prestigious investor oriented publication, this cover story is the largest and most ambitious article in many decades with 15 pages of text and pictures.

The article discusses companies that are applying new technologies to re-exploit old oil and gas fields in California. Without these techniques, oilfields typically close down with a majority of oil in place left un-recovered. New recovery methods provide a potentially huge new upside in numerous old fields that have yet to have the techniques applied.

"Each company featured has a story of operations that is just too important to short cut so we devoted a much greater portion of the magazine to describe these projects to better inform investors and the public," Toal said.

Tri-Valley has the full gamut of techniques, waterflood, steaming, hydraulic and steam fracture and horizontal drilling underway at three of its California properties. By applying these techniques, the Company believes it can recover as much or more as all the previous production plus much greater amounts from oil bearing formations so far un-produced.

"We acquired these properties knowing we would have significant investment in new technology before revenues and advised our shareholders to be prepared for losses until we could implement the development which is now underway in the fields. Now is when we begin to reel in the upside for our shareholders, partners and royalty owners," said F. Lynn Blystone, President and Chief Executive of Tri-Valley Corporation.

On its Temblor Valley West property adjoining the billion barrel plus giant South Belridge Oilfield 40 miles west of Bakersfield, California, Tri-Valley has launched a water flood program in the shallow Etchegoin formation and expects to recover an additional 2.6 million barrels of oil from this zone in one 160 acre corner of the 700 acre property. Additional wells may be drilled on the rest of the acreage in the Etchegoin to increase recovery if the initial project is satisfactory.

On the same property, Tri-Valley has just drilled five vertical appraisal wells into the deeper Diatomite formation and begun fracturing programs using both hydraulic and steaming methods to determine the most effective means to liberate the contained oil. Next will be horizontal drilling in the Diatomite which is now the primary producing zone in the South Belridge Oilfield.

Tri-Valley is also drilling ahead on its first well into California's version of Canada's Athabasca Tar Sands, the Vaca Tar Sand deposit in the Oxnard Oilfield a few miles south of Ventura, California. Tri-Valley will use horizontal drilling and steam assisted gravity drainage (SAGD) to melt and flow the tar from the Upper Vaca section estimated to be some 500 feet thick. Much of these modern tar sand recovery methods have been developed and proved over 40 years of recovery effort in the Athabasca, but they have never been applied to the enormous amount of oil in place in the Vaca deposits. Tri-Valley sees an exceptional upside potential for its shareholders, drilling partners and royalty owners by introducing these previously unapplied techniques in the Vaca unit.

All of these projects are in the forefront of industry efforts to get more of the remaining oil and provide the basis for the Oil and Gas Investor magazine article to inform investors and the public of the upside inherent in these re-exploitation programs.

"Tri-Valley sees these re-exploitation projects as opportunities to build production, revenues, reportable reserves and share value while continuing its high impact exploration drilling that can bring exponential gain on discovery success. It's a blend of low risk build up to mitigate the high risk of drilling big target wildcat exploration prospects," said Blystone.

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 1972. 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
    800-579-9314