Tri-Valley Update on Project and Share Value
Monday April 17, 10:31 am ET
BAKERSFIELD, CA--(MARKET WIRE)--Apr 17, 2006 -- Tri-Valley Corporation (AMEX:TIV - News) issued a statement that it knows of no material nor any operational reason for the recent decline in its stock price.
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In contrast, the Company cited several key projects underway it says will continue to add exceptional value to its shares.
The Company noted that it has successfully raised the required capital, through its newly formed subsidiary, Great Valley Drilling Company LLC, to exercise its option to purchase the only drilling rig based in Nevada from Equipment 2000. This drilling rig is capable of drilling to 10,000 feet and it is also fully equipped to operate in California.
Furthermore, the company is now raising capital apace to complete the purchase of a fleet of work-over rigs that will enable it to work at will on its own oil and gas properties during the mounting unavailability of contract rigs. The Company expects its subsidiary, Great Valley Production Services Company LLC, to have at least six work over rigs, including two that will be capable of drilling to the depth of 5,000 and 8,000 feet.
"The acquisition of these rigs will very substantially enhance and accelerate the increase in shareholder value through reworking and drilling our three very under-exploited oil and gas properties. The Company believes that will yield exceptional reward for the shareholders," said F. Lynn Blystone, president and chief executive officer of Tri-Valley Corporation.
A portion of the recently acquired Temblor Valley oil property adjoining the prolific South Belridge Oilfield is 40 miles west of Bakersfield, California and is slated for initial rework of 17 idle wells and the immediate drilling of a well to core several intervals from 400 to 4,000 feet and most likely complete and hydraulically fracture in the diatomite section which contains 26 to 28 gravity free flowing oil according to nearby producing wells. Following a successful test, the Company intends to drill horizontal wells which are expected to produce at significantly higher rates than vertical well bores. This is designed to exponentially increase production from the Temblor Valley properties from their present 100 barrels per day.
In the meantime, Tri-Valley is permitting an initial test well on its Pleasant Valley oil property near Oxnard, California. This project contains several hydrocarbon bearing intervals from 1,800 feet to 10,000 feet, ranging from 6 gravity heavy oil to 34 gravity light oil. The Company deems a high multiple of recoverable oil possible from this property especially from horizontal drilling and other modern technologies never before applied there. With these new methods, the Company expects to rapidly reclassify presently unreportable volumes of oil into reportable reserves while building production and revenue.
Furthermore, Tri-Valley expects to receive a permit this month to drill its first well on its Moffat Ranch East natural gas project west of Madera, California. The Moffat Ranch Gas Field has given up many billions of cubic feet from three presently producible zones. Of greater interest is that several other intervals that produce on neighboring properties have never been tested on Moffat Ranch East where the Company holds nearly 5,700 acres to support a massive drilling campaign upon successful testing by the first appraisal well.
"We have an uncommonly strong leverage story in re-exploitation of our producing properties and we are confident that these will render our present stock price as undervalued in contrast to the upside in place," Blystone said.
The Company also noted that a mining joint venture of its mineral division had begun production of basalt and cinder for California's burgeoning manufacturing and construction market and expected to achieve profitable operations this year, meanwhile, with gold prices in the $600 per ounce range, Tri-Valley believes it is well positioned with nearly 60 square miles of mining friendly State of Alaska claims with increasing favorable data including physical gold in samples at 60 locations along a 20 mile swath the Company believes suggests a very large system underlying the property.
Concurrent with all the above activities, the Company is continuing to pursue the completion of its two large exploration projects in California, namely the EKHO Deep well and the Sunrise Natural Gas well and it expects to issue some further update on those promising projects later this quarter.
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 www.tri-valleycorp.com and www.tri-valley.de.
Contact:
Contact:
F. Lynn Blystone
President & CEO
Tri-Valley Corporation
1-800-579-9314
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