BAKERSFIELD, Calif., Jan. 3 /PRNewswire-FirstCall/ -- Tri-Valley Corporation (AMEX:TIV) has taken possession of the 850-acre Temblor Valley producing properties and is moving immediately to expand production by reworking existing wells while applying new technology in drilling new wells. The purchase price was $2,850,000 cash.
Comprised of two separate properties, the Temblor Valley Projects will be developed through a joint venture with Tri-Valley managed Opus I Drilling Program LP to rapidly rework existing wells while drilling new horizontal wells.
Of immediate interest is the Temblor Valley West property of approximately 700 acres some 40 miles west of Bakersfield, California and abutting the prolific South Belridge Oilfield, currently the third highest producing field in the contiguous 48 states. Tri-Valley sees two examples of high density and horizontal drilling on similar acreage blocks in the area that each produce well in excess of 4,000 barrels per day and it plans to follow that approach in developing its property.
Tri-Valley's technical staff believes there are several other prospective zones in addition to the traditional producing zones and will drill an appraisal well to further evaluate those opportunities. The Company envisions a combination of deeper vertical wells amongst the shallower horizontal wells to fully exploit the many producing and prospective intervals.
Tri-Valley will move its newly purchased production rig to Temblor Valley West to begin rework of a number of the 54 wells on that property which could occupy it for all of 2006. Also in the first quarter, Tri-Valley will take delivery of a second production rig with the added capability of drilling up to 8,000 feet and plans to use that rig to begin horizontal drilling.
"Temblor Valley West is ideal for re-exploitation in that it is favorably situated yet lightly drilled and never with modern drilling and recovery methods. Even small acreages in the area have yielded huge amounts of oil using old style vertical wells and those employing modern aggressive drilling and drainage techniques have shown the way to get a lot more oil out than previously thought possible," said Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co.
Temblor Valley East is a 160-acre property some 15 miles east of Bakersfield with seven wells currently producing 40 to 50 barrels per day. The Company expects to rework some of those ideal wells and drill a horizontal well for production comparison to the conventional drilling in the field. Tri-Valley's technical staff will also evaluate several deeper zone potentials to multiply the production opportunity.
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, 2005, and the annual report on Form 10-K for the year ended December 31, 2004.
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" in the United States and is also traded in Europe on the Frankfurt Stock Exchange under the symbol "TVC WKN 911919." Our company websites, which include all SEC filings, are http://www.tri-valleycorp.com/ and http://www.tri-valley.de/.
CONTACT:
F. LYNN BLYSTONE, PRESIDENT & CEO
TRI-VALLEY CORPORATION
800-579-9314
DATASOURCE: Tri-Valley Corporation CONTACT: F. Lynn Blystone, President & CEO of Tri-Valley Corporation, +1-800-579-9314 Web site: http://www.tri-valleycorp.com/ http://www.tri-valley.de/
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