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Tri-Valley Commences Operations to Produce Moffat Ranch Gas Wells

Market Wire
11:20 a.m. 09/23/2005

BAKERSFIELD, CA, Sep 23, 2005 (MARKET WIRE via COMTEX) -- Tri-Valley Corporation (TIV) has executed an agreement for pipeline access for its three Moffat Ranch Natural gas wells with California Energy Exchange Corporation and is commencing operations to place the wells on production.

The procedure invoices cleaning out the wells that have been shut in for 10 years and fracturing the productive section to stimulate a greater flow rate. The wells will then be hooked up to the California Energy Exchange Corporation system, which connects with the Pacific Gas & Electric Company main lines for delivery to the ultimate customer targeting revenues beginning in the fourth quarter.

The wells currently produce from the Howard Sand, a tight 100 feet overall shallow section, and Tri-Valley expects production, while somewhat modest, could have considerably long life. Tri-Valley's technical staff has also identified eight separate zones to basement, which are believed to be prospective for hydrocarbons throughout the 5,283-acre Ranch.

Accordingly, Tri-Valley plans to launch an aggressive exploration program on the easterly section of the Ranch with its TVOG Opus I Drilling Program LP, beginning with a 10,000-foot appraisal well to physically evaluate the projected eight different zones to determine the optimum exploration targets.

"The Moffat Ranch Field has given up some 12.5 billion cubic feet from the shallow zones without any fracturing and Tri-Valley believes the tight sands yet hold considerable natural gas in place for re-exploitation using modern technology. Further, even though the deeper zones produce in surrounding fields, the top of the deeper structure at Moffat Ranch has yet to be tested and we consider that to represent an exceptional upside opportunity," said Joseph R. Kandle, president of Tri-Valley Oil & Gas Co. the operating subsidiary.

"Acquisition of the Moffat Ranch Field wells and exploration acreage not only boosts our natural gas reserves and production, but will provide increasing return on investment to our drilling partners. Especially with strengthening gas prices we are moving swiftly to add new production while we continue our large target wildcat exploration in California and Nevada," said F. Lynn Blystone, president and chief executive officer.