Thursday August 26, 4:44 pm Eastern Time
Company Press Release
TVOG Gets First Tranche On Project Ekho
BAKERSFIELD, Calif.--(BUSINESS WIRE)--Aug. 26, 1999--Ten Canadian resource companies
have executed final documents and paid their nonrefundable earnest money to participate in
Project Ekho, a deep oil and gas play near Bakersfield, it was announced Thursday by Tri-Valley
Oil & Gas Co., operator of the play.
The balance of their subscriptions for the $9.5 million initial test well must be in no later than
Sept. 15, 1999.
The Ekho Project Area is located in the Southern San Joaquin Valley, Kern County, Calif., one of
North America's richest and most historic petroleum basins. The Valley district has produced
11.4 billion barrels of oil and 7.1 trillion cubic feet of gas from 22 giant fields and dozens of
smaller fields since the early 1900s.
Even today the Valley District produces more than two times as much oil per day as the entire
state of Oklahoma. TVOG started leasing acreage in the project area in 1997.
Scheduled for 19,000 feet, the Ekho No. 1 will probe a huge, deep target mapped by TVOG from
its proprietary and licensed data. The blowout last year of a deep well being drilled by other
companies on the northwest flank of Project Ekho gave strong encouragement to TVOG and its
partners that the Ekho potential is enormous.
A well drilled to relieve and extinguish the blowout is now being completed with delivery
estimates as high as 50 million cubic feet per day of high btu natural gas.
Working interest partners on the Ekho No. 1 test well are:
Company Stock Exchange/Symbol Initial
Percentage
Aster Ventures Corp. VSE / ASV 20%
Curion Ventures Corp. VSE / CUV 20%
Berkshire International
Mining Ltd. VSE / BKR 10%
Lucre Ventures Ltd. VSE / LVD 10%
Consolidated Bradbury Int'l
Equities Ltd. VSE / CBN 5%
Curlew Lake Resources Inc. VSE / CWQ 5%
CVL Resources Ltd. VSE / CVL 6.64%
Pan Ocean Explorations VSE / POE 5%
Prairie Pacific Energy Corp. ASE / PRP 5%
Royal Int'l Venture Corp. VSE / RIL 5%
Individuals 8.36%
Total Initial Working Interest 100%
These interests will be proportionately reduced by TVOG, which will be carried for 12.5% interest
through drilling and completion. After completion, TVOG will pay its proportionate share of well
costs. After the partners are paid back their drilling and completion costs from production, TVOG
will back in for another 12.5% to bring its total working interest to 25%.
This will apply on the first three wells in the project. Parties participating in all three initial wells
earn an ongoing right of first refusal to participate on a well-by-well basis in subsequent wells in
a comprehensive area of mutual interest.
TVOG is the wholly owned subsidiary of Tri-Valley Corp., which is publicly traded over-the-counter
on the electronic bulletin board under the symbol ''TRIL.'' Both companies have headquarters in
Bakersfield and share the Web site www.tri-valleycorp.com.
This news 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. 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-QSB for the quarter ended June 30, 1999, and the annual report on Form
10-KSB for the year ended Dec. 31, 1998.
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Contact:
Tri-Valley Oil & Gas Co., Bakersfield
F. Lynn Blystone/J. R. Kandle, 661/837-9300
661/837-9309 (fax) |
