Tri-Valley Corporation (NYSE Amex: TIV) today announced the re-start of
production on five existing wells in the Racetrack Hill Area of the
Edison Field near Bakersfield, California in eastern Kern County. Two
additional existing wells in the area are expected to re-start
production following the completion of repairs by the end of June 2010.
Tri-Valley holds a 100% working interest and an 87.5% net revenue
interest on the three parcel leasehold known as the Claflin Lease.
The Claflin Lease was evaluated earlier this year by an independent
petroleum engineer who estimates that the total gross proved reserves
are 2.3 million barrels (100%) and that Tri-Valley’s interest in these
proved oil reserves is 2.0 million barrels (87.5%). The reserves are
contained in two productive oil zones located at relatively shallow
depths ranging between 650 and 750 feet subsurface. Per well production
rates from these same two zones on acreage adjacent to Claflin average
15 barrels per day and Tri-Valley expects to generate similar production
from the seven wells.
"The re-start of production at Claflin represents a significant
operational milestone for Tri-Valley for several reasons,” stated Maston
Cunningham, President & CEO. "First, by the end of June, we expect to be
generating gross production of approximately 100 barrels per day, which
should significantly improve our second quarter top line performance,
especially considering our large ownership interest in Claflin. Second,
we expect to further increase daily production through the introduction
of cyclic steam injection into some of these seven wells later this
month. Third, the re-start validates the investment we are planning for
the drilling of 20 new wells at Claflin under permits already received
from the California Department of Oil & Gas and Geothermal Resources.
Our goal for the 27 wells is to exit 2010 with gross production of 400
barrels per day. If we are successful at achieving this goal, revenue
from this production should enable our operations to generate cash,” Mr.
Cunningham concluded.
About Tri-Valley
Tri-Valley Corporation explores for and produces oil and natural gas in
California, and has an exploration-stage gold property and an
exploration-stage porphyry copper, gold and molybdenum property, as well
as a high grade calcium carbonate quarry in Alaska. Tri-Valley is
incorporated in Delaware and is publicly traded on the NYSE Amex
exchange under the symbol "TIV." The company website, which includes all
SEC filings, is www.tri-valleycorp.com.
Forward-looking Statements
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 "Item IA. Risk Factors" and "Item 7.
Management's Discussion and Analysis of Financial Condition" contained
in the company's Annual Report on Form 10-K for the year ended December
31, 2009.
