SOURCE: Tri-Valley Corporation

May 02, 2007 11:29 ET

Tri-Valley Uses Its Newest Rig to Drill Fifth Temblor Valley Well

BAKERSFIELD, CA -- (MARKET WIRE) -- May 2, 2007 -- Tri-Valley Corporation (AMEX: TIV) has commenced operations to drill its fifth diatomite well in its Temblor Valley West property in the South Belridge Oil Field about 40 miles west of Bakersfield, California and will use its newly refurbished Rig No. 105 for the job.

Previous wells drilled by Rig No. 103 extended the down hole evidence of oil bearing formations about one-half mile beyond the previously mapped boundaries to add substantially to the oil in place and the recoverable potential. This fifth well will be drilled about another one-half mile further west and the Company hopes to further extend the down hole evidence of oil in all its three known shallow oil-bearing zones, the Tulare, Etchegoin and Diatomite, ranging from about 450 feet to more than 2,000 feet.

Following the vertical drilling of this 5th well, Tri-Valley will consider drilling its first horizontal well on the Temblor property, to further optimize production from this field.

Further to that end, Tri-Valley's first newly refurbished steam equipment is due on site at Temblor Valley by mid-May to begin holding heat and pressure to first start the process of steam fracing the Diatomite well, and fracture the zone in the process. Further expansion of this steaming program on the other new wells will take place as the company's additional generator units are also re-fitted to meet all new regulatory standards and sent to the field. Concurrently, Temblor Valley's Etchegoin middle zone is being water-flooded to enhance oil production from that particular formation as well.

Tri-Valley's subsidiary, Great Valley Production Services LLC, has so far re-fitted three rigs to better than new condition for field service. Rig No. 60, a single production rig, has so far worked on 40 wells as the Company proceeds with putting idle Etchegoin wells back on for water flood production. Rig No. 103, a double production rig, was re-manufactured to also serve as a drilling rig and it has been re-assigned to Temblor Valley East for workover of a well, which has now been successfully put back on production at some 50 barrels of oil per day.

The company's newly refurbished Rig No. 105 is one of California's biggest double production rigs, capable of pulling a 15,000-foot well, and has been re-fitted to drill up to 8,000 feet. The fifth Diatomite well will also serve as the shakedown job for this rig which is contemplated to begin drilling the first Pleasant Valley test well in the Oxnard Oilfield about 40 miles south of Santa Barbara.

Great Valley Production Services has three more rigs in various stages of re-manufacture with new engines and digital controls for California and Nevada work. When not being used on Tri-valley projects, the Company will consider contracting one or more of its rigs to other operators from time to time to generate additional income.

"With our producing properties, equipment spreads and highly qualified crews we have assembled an asset platform we believe can be significantly leveraged to increase production, revenue, reportable reserves and share value and that is now underway," said F. Lynn Blystone, president and chief executive officer.

The company has been in business as a successful operating company since 1963, and has been a full reporting 12 (g) publicly traded Delaware Corporation since 1973. 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