SOURCE: Tri-Valley Corporation

March 30, 2007 19:35 ET

Tri-Valley Reports Record Fourth Quarter Profit and Greatly Diminished FY 2006 Loss

BAKERSFIELD, CA -- (MARKET WIRE) -- March 30, 2007 -- Tri-Valley Corporation (AMEX: TIV) has filed its 2006 fiscal year end results with the Securities and Exchange Commission. Buoyed by a record fourth quarter profit of $8,036,972 or $0.34 per share, the loss for the full year ending December 31, 2006 diminished to $940,512 or ($0.04) per share versus a loss of $9,730,071 or ($0.43) per share for fiscal year 2005. Most of the record profit derived from the Company's sale of its interest in a 50-50 industrial mineral mining joint venture to its JV partner so Tri-Valley could redeploy its capital into producing oil property development.

Another first time non cash expense of $1,262,404 resulted from stock options awarded to build staff and warrants attached to privately placed stock. All stock options and warrants must now be expensed, but the Company believes the option program enables successful competition for highly motivated personnel and favorable capital to grow the Company and it intends to continue this practice in its recruitment and private placements for the near term.

"We are seeking senior personnel who want to very substantially increase their earned compensation from options they have on stock they help increase in value and the shareholders have approved a modest pool of stock to fund the option program. Obviously such gains would materially benefit the entire shareholder body," said F. Lynn Blystone, president and chief executive officer.

Tri-Valley had previously filed a two-week extension of the filing deadline to more closely examine the effect of the joint venture sale, and the independent auditors determined that the Company had originally reported it too conservatively. The final audited financial statements now report a profit from the sale that is approximately double Tri-Valley's originally reported figure.

While Tri-Valley's financial and management assessment sections received unqualified opinions, its internal controls and procedures section received an adverse opinion, in part, for initially reporting the effect of the JV interest sale too conservatively.

"This 10-K is the result of the most rigorous preparation and scrutiny in the Company's 34 years of full reporting, and at a time when Tri-Valley is growing exponentially in size and complexity. For instance, in 2006, we formed two new operating subsidiaries for drilling and oilfield services and divested a major mining interest," said Arthur Evans, chief financial officer.

With other adjustments, the Company reported assets of $28,654,125 including $15,598,215 in cash for fiscal year 2006 compared to $19,738,730 with $4,876,921 in cash for fiscal year 2005. Stockholder equity rose to $16,643,618 in fiscal 2006 up from $7,572,720 in fiscal 2005.

The Company expects revenue and profit to grow from its Great Valley Production Services and Great Valley Drilling Company subsidiaries in 2007 and expects daily production of oil and gas to grow from drilling new development wells on its producing properties as well as reworking some 60 existing wells on those properties. By mid year, Tri-Valley expects to see production begin to increase from 41 wells in a water flood program recently initiated in one of the producing formations in its Temblor Valley property some 40 miles west of Bakersfield, California.

"As announced to our shareholders in 2005, we began investing forward of revenues to build an asset platform of producing oil and gas properties from which we could generate high multiple returns to our partners and add exceptional value to our shares. We have overcome increasing shortages in drilling, oilfield services by establishing our own in house services and successfully competing for talented personnel to begin exploitation of those assets and we are building production, revenue, reportable reserves and share value in an ongoing manner," Blystone said.

The Company is in its 44th year of business as a successful operating company and for 34 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." 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, 2006.

Contact Information

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