Tri-Valley to Log 1,500 Feet of Diatomite in Second Development Well
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BusinessWire
12:59 p.m. 11/03/2006
BAKERSFIELD, Calif., Nov 03, 2006 (BUSINESS WIRE) -- Tri-Valley Corporation (TIV) is preparing an intermediate logging of at least 1,500 feet of diatomite formation in its Lundin-Weber D-540-30 development well on its Temblor Valley property some 40 miles west of Bakersfield, California. So far the mud log indicates oil shows of various intensities across the entire length prompting the Company to further define the potential productive zones before deciding if it should drill further or complete in the existing zone.
Tri-Valley originally estimated its 700-ace lease block adjoining the prolific South Belridge Oil Field held approximately 300 million barrels of oil in place based on an estimated 200 feet of high porosity diatomite interval. But the thicker interval suggests the possibility of perhaps twice that amount in place but it is doubtful all of the zone will be productive. Also the Company is using a conservative 11 percent factor in its model for ultimate recovery although it is likely that technology will continue to advance and provide for even higher recovery factors in the future.
"The diatomite formation is receiving increasing attention in the main Westside oil fields as the next big exploitation opportunity and Tri-Valley's lease size and zone data compares favorably with information recently published by other operators in the area who are now committing hundreds of millions of dollars to drill hundreds of new wells in the area to recover tens of millions of new barrels of oil. Similarly we are initially looking at drilling in the range of 60 wells with infrastructure and we already have permitted tankage capacity to handle up to 4,000 barrels of oil per day," said F. Lynn Blystone, president and chief executive officer.
Blystone noted that nearby operators, including Chevron, Aera Energy (a stand alone producing company owned by Shell and Exxon-Mobil), and Berry Petroleum, are aggressively pursuing their diatomite recovery programs in the area as technology advances support tapping the enormous amount of oil in place in that formation in the west site oil fields.
Tri-Valley recently acquired its own production and drilling rigs to enable continuous effort on its Temblor Valley properties to increase production, revenue and reportable reserves to build shareholder value. As more of its rigs become available, it will also begin drilling on its Pleasant Valley property near Oxnard, California. |
