The acute rig shortage has made it more difficult to schedule rig availability at a time when we have just acquired another 65 wells needing rework throughout the year. "We had the opportunity to buy enough rigs at favorable prices and can now assure Tri-Valley's ability to service our projects," said Joseph R. Kandle, president of Great Valley as well as the operating subsidiary, Tri-Valley Oil & Gas Co.
Tri-Valley has begun hiring to crew the rigs and will move the first single to its Temblor Valley West property adjoining the massive South Belridge Complex some 45 miles West of Bakersfield, California. The aim is to begin reworking some of the 18 idle and shut in wells in that project in an effort to double the production in the range of 200 barrels per day from both sections while preparing to drill new horizontal wells. The Company intends to follow the examples of two other nearby development projects of similar acreages each of which now deliver in excess of 4,000 barrels per day from new wells although it cannot guarantee similar results at this stage.
"Rising demand after decades of downsizing has created acute shortages in all phases of the petroleum industry. We believe we can add very significant value to our shareholders by obtaining these rigs to assure consistent, continuous service for our projects and the ability to expand our portfolio and revenue," said F. Lynn Blystone, president and chief executive officer of Tri-Valley Corporation, the public parent of Great Valley Production Services, Inc. and Tri-Valley Oil & Gas Co.
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