Tri-Valley Adds Drilling Program
biz.yahoo.com
Tuesday December 21, 4:05 pm ET
BAKERSFIELD, Calif., Dec. 21 /PRNewswire-FirstCall/ -- With participation increasing in its TVOG Opus I Drilling Program LP, an oil and gas exploration program focused on very large target wildcat prospects in California and Nevada, Tri-Valley Corporation (Amex: TIV - News) announced it is forming the Oil Quest I Drilling Program, LP, a $50 million maximum partnership to be marketed exclusively through NASD Broker/Dealers and their representatives. Like Opus I, the partnership will explore high impact, large target oil and gas prospects which will be drawn from Tri-Valley's proprietary database as well as quality submittals from outside.
To date, Tri-Valley's Opus I exploration program has been funded through private placement investment by high-net worth individuals who have taken the exploratory risk, and tax benefits, on several large-target prospects. Activities to date have resulted in two exceptionally large discoveries. These projects are still in the completion stage due to tight reservoirs which require additional engineering to stimulate commercial flow rates. Eighteen more prospects remain in the Opus I program.
Realizing the extraordinary upside potential of such a program, several broker-dealers have expressed interest in Tri-Valley designing a program for their clients interested in high risk-high reward drilling. Oil Quest will be patterned after Opus I and will offer the same opportunity for extraordinary gains balanced against mitigated risk through diversification.
"More and more investors are realizing that exploration for really big targets in the United States can deliver an uncommonly valuable asset and tax-sheltered income stream. The high risk of exploration can be mitigated with a large prospect inventory, advanced technology, sound operations and, of course, the benefits of the last great tax shelter as an incentive for private investors to take the risk associated with exploration. We can furnish all those features," said F. Lynn Blystone, president and chief executive officer of Tri-Valley.
"Additionally this program will greatly multiply the exposure of our shareholders to the upside benefits of discovery success. A recently conducted independent analyst report postulates TIV's share value at many times what it is today, even after heavily discounting the Opus I potential. So, the addition of Oil Quest I should provide further support for increasing our stock value as discovery success on any one of these big targets could potentially be a company maker for Tri-Valley as project operator with a 25% carried working interest on the initial test wells," Blystone said.
Tri-Valley is increasing its technical staff substantially to more rapidly generate new prospects in house as well as review outside submittals of merit. While Opus I has focused on the prolific producing area of California's Great Central Valley, Oil Quest I Drilling Program LP may extend to other venues including the Rockies, Mid Continent, and Gulf Coast, or wherever big exploratory prospects can be identified.
Headquartered in Bakersfield, California, a prolific oil and gas producing area, the Company is in its 42nd 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.
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, 2004, and the annual report on Form 10-K for the year ended December 31, 2003.
For further information, please contact F. Lynn Blystone, President & Chief Executive Officer of Tri-Valley Corporation, +1-661-864-0500, or toll free, +1-800-579-9314, or fax, +1-661-864-0600.
Source: Tri-Valley Corporation |
