Tri-Valley Forecasts $30 Million CAPEX for 2007 Exploitation and Exploration Projects
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Market Wire
2:42 p.m. 12/08/2006
BAKERSFIELD, CA, Dec 08, 2006 (MARKET WIRE via COMTEX) -- Tri-Valley Corporation (TIV) and its subsidiaries are forecasting $30 million in 2007 capital expenditures to accelerate drilling, production, revenue and reportable reserve increases on the petroleum side of the company's business.
Build up of the rig fleet in Great Valley Production Service LLC and Great Valley Drilling Co LLC will continue as rigs are completely re-manufactured to "better than new" condition and crew strength is increased to help speed up drilling on the Company's development properties and new large target wildcat exploration targets. By year end Great Valley Production Service will take possession of 7,500 feet of hard to get new drill pipe to support the fleet of six rigs capable of drilling in the range of 2,000 to 10,000 feet.
Tri-Valley Oil & Gas Co. will continue development of its Temblor Valley West lease adjoining the prolific South Belridge Oilfield west of Bakersfield, California and initiate development of its Pleasant Valley heavy oil property near Oxnard, California. Additionally, further work will be done on the Ekho deep well and the massive Sunrise Natural Gas Project both of which have tight formation conditions to be overcome to reach commercial production status. Much of this will be managed by TVOG's newly hired formation expert, Dr. Moe Hanna, General Manager of Engineering.
Tri-Valley Oil & Gas Co. is scheduling test wells on several San Joaquin Valley natural gas targets totaling in excess of 100 billion cubic feet potential and two very large target wildcat oil prospects. One of the oil targets is a California San Joaquin Valley prospect internally estimated to hold a potential 500 million barrels and the other is a Nevada prospect internally estimated to hold a potential 2245 million barrels. Both of these are high risk targets far from established production.
"We continue to develop our exploitation and exploration capability and add properties and prospects to add value for Tri-Valley shareholders. We are focused on high upside opportunities for that purpose," said F. Lynn Blystone, President and Chief Executive Officer of the publicly traded parent, Tri-Valley Corporation.
"We also believe our growth can be enhanced by acquisition and we are evaluating several properties and some companies for potential accretive growth," Blystone said.
Budgets are being drawn for 2007 activities for the Company's mineral subsidiary, Select Resources Corporation, which will apply its efforts in evaluating a broad range of industrial properties in Nevada along with its copper interests there and, possibly, recommissioning the Admiral Calder high grade, high bright calcuims carbonate mine in southeast Alaska. The Calder deposit is ranked in the top one percent of such quality holdings in the world. Further exploration work is scheduled for Select's two large gold projects in central Alaska.
"With the redeployment of $14 million in internal capital, additional funds from other petroleum drilling partners and proceeds from a planned conservative private placement equity offering we expect to apply the $30 million to leverage the value into our shares and new production revenue. We have assembled a powerful asset platform and the staff to exploit it for exceptional gain. We are also positioned to take special opportunities as they emerge to accelerate our growth," Blystone said. |
