Tri-Valley Corp (fka TVLYQ)

[jonesieatl]

Hi LaoWai ....

.... does Hi LaoWai rhyme? Just trying to pronounce your name right ;)

I suppose it depends on how one parses the news release to see what it implies , and what it states as definite fact. We went over that a few days ago when that PR came out.

"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."

So , as of 6/12 , they weren't actually at that volume but were "moving rapidly" to get there.

re: "at least 2,000" , when I first read that it seemed a little confusing. Did that mean Conoco was capping how much tar sands output they would accept from TIV since Conoco might limit their tar sands refining capability in lieu of more easily processed hydrocarbons? Did it mean TIV has to increase production to "at least" that volume before Conoco will deal with it at all? The use of "at least" in that statement makes it a little ambiguous IMO , but then I've only had two cups of coffee so far lol , help me out here.

"The 2,000 BOED target was driven by the goal of returning Tri-Valley to profitable operations"

That certainly implies that 2,000 BOED is the production required from PV which , when added to production from other properties , gets TIV past breakeven into profitability , so it's a helpful number to have.

""we expect to begin actual delivery of the production goal as soon as permits and production facilities are complete" said Joseph R. Kandle"

So again , as of 6/12 TIV said they weren't yet at that production level , but were still working on permitting and infrastructure to get there.


"the production rates of those individual wells are not publicly reported while they are being tested."

"being tested". Not sure that means producing 2000 BOED every day. It could be max production in limited "test" bursts.

"With oil prices three times what they were when we acquired these under exploited properties"

That brings up an interesting question , that of what price does TIV actually get for this 'heavy oil'? Even though it is probably not the oil price we see streaming across the tickers every day , it should be proportionately higher than the price heavy oil or tar sands output sold for a year ago. One might also expand that question to ask what are the associated recovery costs , as we know it costs more per bbl to steam/pump/add-diluent than to just pump. However , if the 2000 BOED = breaking into profitable territory , then I suppose we don't have to know those exact numbers and could just assume TIV has already done the math and the statement is accurate.

"We are in the right place, at the right time with the right commodity"

That's gotta be true. If they can produce enough of it profitably this could be a great year for TIV.

All in all LaoWai , I think it remains to be seen whether TIV "is" at that number "daily" , or still moving rapidly towards it. Certainly TIV seems to have more achievable potential today than they did a few years ago.

JMO and while others might not try and 'read between the lines' quite as much , I've found that based on past years of "Press Released numbers vs Ultimate Actual numbers" disparities , it's generally wise to read the PRs with careful attention to wording , as I'm sure the company puts a lot of thought into exactly how they word PRs.

Welcome aboard!

jonesie