SOURCE: Tri-Valley Corporation

January 31, 2007 15:19 ET

Tri-Valley Proceeds With Temblor Drill Program and Hires Special Projects Manager for Acquisitions

BAKERSFIELD, CA -- (MARKET WIRE) -- January 31, 2007 --Tri-Valley Corporation (AMEX: TIV) announced that the third development test well on its Temblor Valley West property was continuing to be drilled past the original target depth of 1,000 feet, because it has continued to encounter oil shows on the mud log and that all the core samples taken from its three prospective zones also contain oil. The first three test wells drilled so far on the Temblor Valley property are significantly serving to define and prove up the field.

Additionally, Tri-Valley expects to have 34 of the 49 wells on its Temblor Valley West property producing by mid February up from only 10 producing late last year. The rest will be utilized to begin a water flood of the Etchegoin zone to increase production.

The company also advised that the initial well for Tri-Valley's Pleasant Valley property is now being prepared for drilling to further accelerate daily oil production increases for this year. F. Lynn Blystone, president and chief executive officer, noted that Tri-Valley's recently acquired rig in Nevada is moving in to drill a geothermal well and the Company expects to keep the rig busy for this year.

Tri-Valley has also announced that Egan Gost has joined the Company as Manager of Special Projects. Mr. Gost will identify, evaluate and select various candidates for acquisition and build a proprietary database of such targets.

"Now that development is underway on our producing properties to build production, revenue and shareholder value from those sources, we will accelerate growth and cash flow from accretive actions as well," Blystone said.

Mr. Gost holds a B.S. degree in science and business from Fresno State University and a juris doctor from the Mc George School of Law of the University of the Pacific. He is involved in continuing graduate corporation and business programs at the Wharton School of the University of Pennsylvania. His career experience includes stints with Morgan Stanley Brokerage, Capital Markets specialist with CB Richard Ellis, involved in over $1 billion of commercial transactions, Western regional Manager for Salter Lake Predical Equipment and Manager for Cedar Valley Construction.

"Mr. Gost is well experienced in prospecting, analysis, negotiating, financial structuring and deal closing, and Tri-Valley Corporation and its subsidiaries are at stages where corporate opportunities can be effected for even more rapid growth of shareholder value which is our number one priority," Blystone said.

The Company is in its 44th year of business as a successful operating company and for 33 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 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 September 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
    800-579-9314