Situated between the billion barrel Elk Hills and Belridge Oil Fields, the Elk Ridge play was generated from a 50-square mile 3-D seismic survey along with offset wells in the area, and discovery success would open up a huge following development opportunity.
"Less than one mile deep, additional wells will be relatively inexpensive and can be drilled in less than a week for a very rapid expansion if we make a commercial discovery," said Joseph R. Kandle, president of the field operating subsidiary, Tri-Valley Oil & Gas Company, which drills the wells for the exploration program managed by the publicly traded parent company.
Tri-Valley is in the completion testing phase on four other separate very large target prospects drilled earlier and looks to prove up one or more over the next three or four weeks. All are much larger targets than Elk Ridge, and all have tight formation characteristics requiring additional treatment to enable the oil and gas to flow at commercial rates.
Comprised of 26 very large prospects, the Tri-Valley exploration program seeks to provide its shareholders and drilling partners with the opportunity for exceptional returns that offset the expected dry holes which are inevitable in the business.
"We've already found enormous amounts of high quality oil and gas in place in earlier prospects which pose engineering challenges to make them productive. As we work on those now lower risk opportunities, we will continue to drill our prospect inventory for more conventional success and high gains in value when we bring in one of these big targets. With this many projects underway at once, it is a most exciting time for us," said F. Lynn Blystone, president and chief executive officer of the parent company.
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