BAKERSFIELD, Calif., Nov. 25, 2003 (PRIMEZONE) -- Tri-Valley Corporation (AMEX:TIV) expects to finish the year on a high note as it completes three very large target oil and gas prospects and possibly drill a fourth natural gas prospect.
The Company's Oil Creek Prospect near Coalinga, California, is now recovering some oil with only 1/3 of the lower Gatchell Zone perforated. Until the results are evaluated, Tri-Valley is deferring perforation of any more of the section.
Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co., noted that there are plans to test an additional five intervals in the well with indications of hydrocarbons, as well.
Location is being cleared to move in a production rig on Tri-Valley's Oil Lake Prospect some 40 miles southwest of its Bakersfield, California headquarters and 120 miles south of Oil Creek.
Mr. Kandle advised that Tri-Valley would "high grade" the 370 feet of hydrocarbon shows in the Oil Lake well to initially concentrate on 150 feet of interval logging two ohms and above.
On its Sunrise horizontal natural gas well near Delano, California, Tri-Valley is preparing a program to hydraulically refracture the Sunrise-Mayel No. 2HR, this time using diesel oil fracturing fluid to completely eliminate any possibility that clay swelling is inhibiting commercial flows of natural gas.
"Since there is no material change in the integrity or promise of these very large target prospects, we have no explanation for the pressure on our stock at the American Stock Exchange. We believe we will deliver exceptional upside on completion success on one or more of these prospects," said F. Lynn Blystone, president and chief executive officer of the publicly traded parent, Tri-Valley Corporation.
"These prospects are more of a process than an event," Blystone noted, "and require some patience until they reach their conclusion."
Tri-Valley Corporation and its subsidiaries, Tri-Valley Oil & Gas Co. and Tri-Valley Power Corporation are headquartered in Bakersfield, California, entering the 41st year of business as a successful operating company and 31 years as 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 Berlin and Frankfurt Stock Exchanges 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, 2003, and the annual report on Form 10 K for the year ended December 31, 2002.