Tri-Valley Drilling Ahead on 8th Horizontal California Vaca Tar Sands Well
Posted 12 December 2008
BAKERSFIELD, CA -- (Marketwire) -- 12/12/08 -- Tri-Valley Corporation (AMEX: TIV) (NYSEAlternext US: TIV) announced its Lenox Ranch Lease No. 109-H oil well hassuccessfully set casing at its pre-determined vertical depth, inpreparation to make the turn for a horizontal bore into the Upper Vaca TarSands formation of the Oxnard, California oilfield. The Company intends todevelop the lease with at least 10 such wells for production and ultimatelydrill several injector wells for continuous steaming to heat up the tar oilsands for ease of production and high recovery.
During the past year, Tri-Valley has successfully drilled seven other suchhorizontal oil wells on the Hunsucker Lease, just north of the Lenox RanchLease and, while steadily recovering oil from that project, it has beenexpanding the facilities there to accommodate much larger productioncapacity than initially thought possible.
"With sufficient heating cycles, all these wells can flow at least 500barrels of oil per day. Of course, this requires commensurate expansion ofevery aspect of the field infrastructure from natural gas supply to fuelthe steam generators, to treatment and processing equipment and storagefacilities. Ultimately we will drill companion injector wells that enablecontinuous steaming for continuous production. Once all the saidinfrastructure is in place, our production rates will achieve maximumcapacity," said F. Lynn Blystone, president and chief executive officer.
Simultaneously, Tri-Valley is in the final stages of steaming the firstgrouping of 19 existing vertical wells drilled by a prior operator on thesame Lenox Ranch Lease, with the aim of returning them to full production.The new horizontal wells, which contact six or seven times as muchproductive reservoir as do the vertical wells, are expected to produceseveral times the output of oil per day than do the vertical wells.Nevertheless, all the remaining vertical wells will be re-worked to enablethem to be steamed as well in order to add to the productivity of thelease.
Tri-Valley has been in business as a successful operating company since1963, and has been a full reporting 12 (g) publicly traded DelawareCorporation since 1972. Tri-Valley Corporation stock is publicly traded onthe 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 risksand uncertainties. Actual results, events and performance could varymaterially from those contemplated by these forward-looking statementswhich 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 performanceto differ materially are risks and uncertainties discussed in the company'squarterly report on Form 10-Q for the quarter ended September 30, 2008, andthe annual report on Form 10-K for the year ended December 31, 2007.
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