To date, Tri-Valley's Opus I exploration program has been funded through private placement investment by high-net worth individuals who have taken the exploratory risk, and tax benefits, on several large-target prospects. Activities to date have resulted in two exceptionally large discoveries. These projects are still in the completion stage due to tight reservoirs which require additional engineering to stimulate commercial flow rates. Eighteen more prospects remain in the Opus I program.
Realizing the extraordinary upside potential of such a program, several broker-dealers have expressed interest in Tri-Valley designing a program for their clients interested in high risk-high reward drilling. Oil Quest will be patterned after Opus I and will offer the same opportunity for extraordinary gains balanced against mitigated risk through diversification.
"More and more investors are realizing that exploration for really big targets in the United States can deliver an uncommonly valuable asset and tax-sheltered income stream. The high risk of exploration can be mitigated with a large prospect inventory, advanced technology, sound operations and, of course, the benefits of the last great tax shelter as an incentive for private investors to take the risk associated with exploration. We can furnish all those features," said F. Lynn Blystone, president and chief executive officer of Tri-Valley.
"Additionally this program will greatly multiply the exposure of our shareholders to the upside benefits of discovery success. A recently conducted independent analyst report postulates TIV's share value at many times what it is today, even after heavily discounting the Opus I potential. So, the addition of Oil Quest I should provide further support for increasing our stock value as discovery success on any one of these big targets could potentially be a company maker for Tri-Valley as project operator with a 25% carried working interest on the initial test wells," Blystone said.
Tri-Valley is increasing its technical staff substantially to more rapidly generate new prospects in house as well as review outside submittals of merit. While Opus I has focused on the prolific producing area of California's Great Central Valley, Oil Quest I Drilling Program LP may extend to other venues including the Rockies, Mid Continent, and Gulf Coast, or wherever big exploratory prospects can be identified.
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