Located some 40 miles west of Bakersfield, California on the western flank of the billion-barrel South Belridge Oilfield, Tri-Valley's 700-acre lease sits high to the main oilfield structure.
"Leases at South Belridge are very densely drilled, sometimes as many as 4-5 wells to the acre in the diatomite zone, and we are just beginning our exploitation of our lightly drilled property. We have only 49 wells that came with the property, and none of those are completed in the Diatomite formations, leaving this entire upside for Tri-Valley shareholders and drilling partners," said F. Lynn Blystone, president and chief executive officer.
He noted that the operating subsidiary, Tri-Valley Oil & Gas Co., is cleaning out the recently drilled first well into the Diatomite, which had been hydraulically fractured with 2,300 barrels of fluid and 500,000 pounds of frac sand by Halliburton a few days earlier. Once the frac fluid is expelled, the oil can flow into the well bore for recovery typically lasting several decades for wells in that area.
So far Tri-Valley has at least three oil saturated formations to exploit: The first well identified approximately 50 feet of heavy oil in the shallow Tulare interval, 25 feet of higher gravity Etchegoin zone from which the existing wells have produced as long as 80 years and some 315 feet of Diatomite saturated with lighter oil. The Company is permitting a multiple well program on Temblor Valley property to boost production, revenue and reportable reserves to build share value and partner returns.
Tri-Valley is conducting this drilling campaign with its own rigs and crews operated by its subsidiary, Great Valley Production Services LLC. Great Valley owns eight production rigs of which five are being refitted to also enable them to drill wells up to 8,000 feet in depth. This will enable Tri-Valley to steadily accelerate a densely spaced drilling campaign to maximize multiple zone recovery and ramp up daily production.
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