Tri-Valley to Drill at Los Gatos Prospect
|Monday, August 23, 2004
Tri-Valley has commenced operations to drill its Los Gatos prospect near Coalinga, some 100 miles north of Bakersfield, California. The play levers off an earlier test in which the Oil Creek well had 215 feet of oil shows in the Gatchell Sand which was found to have been depleted of hydrocarbons at that location by the offset Coalinga Extension found Oilfield which has cumulative production of 504 million barrels of oil and 536 billion cubic feet of gas. However, the Los Gatos prospect is two miles away and 2,000 feet higher in what Tri-Valley believes is a discrete and promising structure.
As is characteristic with many California plays, the prospect has multiple objectives and Tri-Valley is able to assign an aggregate potential in excess of 50 million barrels of oil equivalent for the Los Gatos Prospect.
The Los Gatos Prospect is part of the inventory of the TVOG Opus I Drilling Program LP, a $100 million exploration project focused in California plus three Nevada wildcats. In Opus I, Tri-Valley is looking for large targets where discovery success can yield exceptional reward for its shareholders and drilling partners. In that regard, the Company is also gearing up to conduct a hydraulic fracture of a promising zone below 18,000 feet in its Ekho deep well to generate commercial flow rates of this important discovery.
Because California is, by itself, the world's fifth largest economy which is growing at nearly 6% annual rate with a voracious appetite for more energy, Opus I is both geologically and market driven and is structured for extraordinary size success when a discovery is made.
"Only by getting busy and finding big, new, flush production, long life reserves can we make any headway in the increasing supply/demand imbalance in California and the United States. Tri-Valley has geared up to meet this challenge and expects to reward its shareholders and drilling partners and consumers appropriately," said F. Lynn Blystone, president and chief executive officer.