Net income increased 51% from $769,130 in fiscal year ending December 31,2002 to $1,159,782 in FY 2003 on FY 2003 revenues of $7,609,245 up 21% from FY 2002 revenues of $6,284,908. Assets jumped 80% from FY 2002 assets of $4,634,874 to $8,320,992 in FY 2003 and stockholder equity climbed 102% from $1,262,306 in FY 2002 to $2,555,456 in fiscal year ending December 31, 2003. The independently engineered value of oil and gas reserves is carried off the balance sheet and is conservatively estimated to be $2,270,632 after applying a 10% discount rate and deducting future taxes and costs.
Tri-Valley's primary activities in FY 2003 were the TVOG Opus I Drilling Program LP, which searches for very large exploration targets mainly around the prolific Bakersfield, California producing area plus three wildcat prospects in lightly explored Nevada. The Company has assembled the program to provide its shareholders and drilling partners the chance at exceptional upside reward on discovery success and has raised nearly $23 million of the estimated $100 million needed for the entire program.
Initial discoveries of high quality oil and gas in place have already been made in the first half dozen of the 26-prospect inventory, all so far are in so called "tight" formations requiring additional completion efforts to attain commercial flow rates.
"We expect one or more of these to achieve commercial success this year as well as drill several more of the prospects in the inventory to increase the chances of big, commercial success. In addition to rewarding our investors who take the risk, consumers are the ultimate beneficiary from our success at a time when energy prices are becoming a concern," said F. Lynn Blystone, president and chief executive officer.
The Company noted it had wells on four large prospects in various stages of completion and is preparing an offset well and another new Bakersfield prospect as well as a Nevada prospect anticipated for drilling in the second quarter.
"Consistent with our projections in putting our Opus exploration program in place gasoline prices are pushing record levels in advance of the heaviest driving season and a natural gas shortage has been confirmed by Alan Greenspan in Congressional testimony. We believe our exploration program in California, the world's fifth largest economy, is a prime opportunity for investors and a source of hope for beleaguered consumers. We are striving to accelerate our drilling activities to those ends," Blystone said.
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