SOURCE: Tri-Valley Corporation

March 05, 2007 14:24 ET

Tri-Valley Update in Advance of Year End Filing March 16, 2007

BAKERSFIELD, CA -- (MARKET WIRE) -- March 5, 2007 -- In advance of releasing its 2006 fiscal year end results, Tri-Valley Corporation (AMEX: TIV) notes that it is enjoying its strongest financial position ever as it proceeds forward with its oil projects.

"For the fiscal year ending December 31, 2006, Tri-Valley closed with more than $15 million in cash and has added more than $5.4 million in the first quarter of 2007 enabling it to accelerate its projects to build production, revenue, reportable reserves and share value in 2007," said F. Lynn Blystone, president and chief executive officer.

Tri-Valley is currently drilling the last of its planned four development test wells on its 730 acre Temblor Valley West property. Using its own rig and crew, Tri-Valley has resumed drilling below 600 feet after setting casing last Friday on it fourth test well. The target depth in this fourth well is approximately 1,000 feet. It is drilling through oil shows in the three known zones in this field.

So far these test wells have extended the three oil bearing zones more than a quarter of a mile beyond the originally mapped area of closure which significantly increases the potential of the Temblor Valley West Oil project which adjoins the prolific South Belridge Oilfield some 40 miles west of Bakersfield, California. Once all data is analyzed to determine optimum producing arrangements, the Company will begin drilling additional production development wells.

Blystone noted that its two new subsidiaries, Great Valley Production Services LLC and Great Valley Drilling Company LLC, are both operating profitably. The company expects these subsidiaries to significantly increase their profits from drilling and work over operations in the first quarter of 2007. The GVPS is bringing existing idle wells on line, and has drilled the four test wells at Temblor Valley west, while GVDC is drilling contract geothermal wells in Nevada.

The Company is continuing its research to solve the low permeability obstacles of its two major discoveries in the Ekho deep well and the Sunrise Natural Gas Project. Tri-Valley will also commence drilling its Pleasant Valley heavy oil project in Ventura County once permitting is complete. Later in the year, the Company will begin drilling its Moffat Ranch East natural gas property west of Fresno, California and a major exploratory well, the Oil King Project also in California's Great Central Valley.

"We are focused on maximum leverage plays where discovery and development success yield high multiple returns to our partners and shareholders. We are staffing up with high-quality people who have examined our opportunities and believe that their efforts can be exceptionally rewarded through options on stock they help increase in value. The options are always awarded at market price," Blystone said.

The Company is not aware of any reason for the recent weakness in its stock and expects its project results to support increasing confidence in the upside leverage of the Company's ventures.

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." Our company website, which includes all SEC filings, is

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

    F. Lynn Blystone
    President & Chief Executive Officer