SOURCE: Tri-Valley Corporation

April 07, 2006 14:15 ET

Tri-Valley Files Notices to Drill Five Oil Wells and One Gas Well to Boost Production

BAKERSFIELD, CA -- (MARKET WIRE) -- April 7, 2006 -- Tri-Valley Corporation (AMEX: TIV) is permitting the drilling of five oil wells and one gas well to boost production and expand its proven reserves. The Company expects to begin drilling the first of four test wells on its Temblor Valley property 40 miles west of Bakersfield, California and adjacent to the prolific South Belridge Oilfield during this second quarter. These wells will core at intervals in the Tulare Etchegoin and the Diatomite, formations between 400 and 4,000 feet to provide data to optimize horizontal wells to be drilled in the third and fourth quarters. The Temblor Valley test wells will also be hydraulically fractured to further enhance flow from the completed intervals and provide the model for field development.

The Company also expects to begin making location in May to drill a 10,300 basement test well on its Moffat Ranch East property west of Madera, California. The well will appraise several zones that produce on neighboring lands in other fields on trend but have never been tested on the Moffat Ranch East leasehold.

Tri-Valley is also permitting a new appraisal well on its Pleasant Valley property near Oxnard, California to test the upper Vaca Tar Sand and Monterey Shale intervals to 2,900 feet in preparation for horizontal drilling and steaming to assist the heavy oil to flow at higher rates than can be achieved by conventional vertical wells.

"We are opportunistic at this time on which property we will emphasize for re-exploitation as they each hold great potential for recoverable hydrocarbons. The test wells will show us the way to maximize the delivery of reward to our project partners and shareholders," said Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co.

All three properties are deemed to hold many millions of barrels of oil equivalent using standard industry methods for evaluating petroleum properties and the Company expects its development programs to reclassify those potentials into reportable reserves on an increasing basis.

"In addition to exploring for new discoveries, Tri-Valley has excellent properties for re-exploitation using modern technology including horizontal drilling, hydraulic fracturing of the productive intervals and specialty steaming to recover millions of barrels of oil left behind by earlier production efforts. Tri-Valley is focused on obtaining these rewards for its shareholders and project investors," said F. Lynn Blystone, president and chief executive officer of Tri-Valley Corporation.

Tri-Valley Corporation 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. The Company's 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 September 30, 2005, and the annual report on Form 10-K for the year ended December 31, 2004.

Contact Information

  • Contact:
    F. Lynn Blystone
    President and CEO
    661-864-0500