Tri-Valley Corp (fka TVLYQ)

[jonesieatl]

Tri-Valley Receives Approval from ConocoPhillips for 2,000 Barrels Per Day

Date : 06/12/2008 @ 12:43PM
Source : Business Wire
Stock : Tri-Valley Corporation (TIV)
Quote : 6.13 0.08 (1.32%) @ 12:35PM

Tri-Valley Receives Approval from ConocoPhillips for 2,000 Barrels Per Day

Tri-Valley Corporation (AMEX:TIV) has received approval from ConocoPhillips Crude Oil Trading to increase shipments for refining to at least 2,000 barrels of oil per day from its Pleasant Valley development project in the Oxnard, California Oilfield. Accordingly, Tri-Valley is moving rapidly to effect the permits and processing facilities to accommodate that volume.

Tri-Valley began an accelerated development program termed “Operation Catapult” in February of this year on its six producing properties in California with the aim of achieving 2,000 barrels of oil equivalent a day (BOED) by year end and has already attained that capability more than six months ahead of schedule. The 2,000 BOED target was driven by the goal of returning Tri-Valley to profitable operations after some years of investing forward of revenues to assemble the properties, personnel, equipment and permits to effect an extraordinary increase in production while oil prices escalated.

“The Tri-Valley technical and administrative teams have performed exceptionally to beat the project target time lines and we expect to begin actual delivery of the production goal as soon as permits and production facilities are complete,” said Joseph R. Kandle, president of Tri-Valley Oil & Gas Co., the operating subsidiary of the publicly traded parent.

Led by Tri-Valley Oil & Gas Co. vice-president of operations, Robert Bell, Operation Catapult combined the geological and engineering staffs supported by the full administrative and accounting staffs and is capitalized by Tri-Valley’s Opus I Drilling Program LP to drill a number of new wells and re-work existing idle and underperforming wells to yield a total of 40 active producing wells to date on its various properties. Several of the new wells are on confidential status with the California Division of Oil, Gas and Geothermal Resources and thus the production rates of those individual wells are not publicly reported while they are being tested. Tri-Valley now aims for a combined production capability of 3,000 BOED or more by this year-end fueled by production potential of several new wells on its various oil and natural gas properties.

“With oil prices three times what they were when we acquired these under exploited properties, we believe we will rapidly build production, cash flow, reportable reserves, share value and reward for our drilling partners at an exceptional rate this year. We are in the right place, at the right time with the right commodity,” said F. Lynn Blystone, president and chief executive officer of Tri-Valley Corporation.

Tri-Valley has been in business as a successful operating company since 1963, and has been a full reporting 12 (g) publicly traded Delaware Corporation since 1972. 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, 2008, and the annual report on Form 10-K for the year ended December 31, 2007.

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