With tens of thousands of wells drilled, the South Belridge Oilfield is the third highest producing oilfield in the 48 contiguous states and properties on its flank have achieved thousands of barrels of oil per day production rates after intensive infill drilling. Tri-Valley believes its lightly drilled property is similar and has mapped an extensive trend of oil bearing zones for exploitation through the lease block.
With some of its Etchegoin wells more than 80 years old, Temblor Valley has never had modern recovery methods applied in any of the zones. A principal target of the first well will be the diatomite section between 750 and 3,600 feet which is known to contain free flowing 26 gravity oil, but as yet is undeveloped on the lease block. If the cores are encouraging, Tri-Valley will adopt the successful methods applied on surrounding leases to achieve high production rates including horizontal drilling and hydraulic fracturing of the well bores. The coring will help confirm the amount of oil in place and the probable ultimate recovery.
"This field is being developed through the TVOG Opus I Drilling Program LP in which Tri-Valley, as operator, has a 25% working interest and is carried in the initial test wells. The Opus program is a $100 million venture that is being converted from exploration to development of producible properties now owned by the partnership and Temblor Valley is the first of three such properties, all with multiple zones for testing and exploitation," said F. Lynn Blystone, Tri-Valley's president and chief executive officer.
In addition to the geologic potential of Temblor Valley, the Company's subsidiary, Great Valley Production Services, will inaugurate its entry into the drilling business by drilling Tri-Valley's first development well. Great Valley now has eight producing rigs capable of workover jobs up to 18,000 feet and five of the rigs are being fitted to also function as drilling rigs on wells 2,000 feet to 8,000 feet in depth.
Randy Stafford, vice president of operations for Great Valley Production Services, noted: "Our fleet and crews give Tri-Valley a definite advantage in timely development and maintenance of the producing properties. We believe this will strongly contribute to adding shareholder value and accelerate and enhance returns to our project investors."
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