SOURCE: Tri-Valley Corporation

June 13, 2006 10:21 ET

Tri-Valley to Accelerate Ekho Project Evaluation by Fracing Companion Well

BAKERSFIELD, CA -- (MARKET WIRE) -- June 13, 2006 -- Tri-Valley Corporation (AMEX: TIV) has announced plans to apply modern technology to North America's deepest oil producer when it hydraulically fractures the McClure Shale in the Tenneco Union GBR 66X-3 well some 1,320 feet north of the Company's Ekho No. 1 deep well.

Now owned by Tri-Valley, the 66X-3 was drilled to 18,880 feet in 1975 and produced about 10,000 barrels from the Vedder Sand to claim the record as North America's deepest producing oil well before down hole problems not understood at the time caused the well to be abandoned. The 66X-3, along with the Great Basins 31X-10 drilled to 21,640 feet about 2,300 feet to the west southwest, became the data wells for Tri-valley's 19,085 foot Ekho No. 1.

Comprising more than 1,000 feet of oil saturated gross interval in both the Ekho No. 1 and the 66X-3, the McClure Shale formation is of low permeability and requires treatment that was untried in the area in the 1970's. By fracing the McClure section in the 66X-3 Tri-Valley is able to test a wider horizon faster in the Ekho Project and preserve the Ekho No. 1 well for other treatments as the Company seeks to find a method to extract the bounty at commercial rates. It also allows for testing the shallower McClure from 12,880 to 14,000 feet while testing the Santos Shale in the Ekho No. 1 from 17,500 to 18,000 feet.

Data from all three wells, including core from the Ekho No. 1, suggests all four deep formations totaling more than 2,500 feet of gross interval of oil and gas rich zones could potentially contain one million barrels of oil equivalent (BOE) in place per acre using conventional oil industry factors; in this case, 400 BOE per acre foot in-place, common for the area. However, the formations are dense which currently inhibits the flow of the super high quality oil and gas discovered and Tri-Valley is treating these zones with modern techniques in an effort to stimulate flow at commercial rates and thus capture a bonanza reward for its shareholders and project investors.

"Having more than one deep well to work with on these multiple horizons enables us to test the McClure now rather than wait for testing of the Santos Shale and the Olcese Sand before we can get to the McClure in the Ekho No. 1. We can really accelerate the evaluation of the project opportunity this way. Testing this McClure interval also gives up data that might be useful on our big natural gas discovery in the McClure, the Sunrise Natural Gas Project, near Delano, California about 20 miles away from the Ekho and 66X-3 wells," said Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co.

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." 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, 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