Tri-Valley Corporation will aggressively build on its recent success at the Pleasant Valley Project, by drilling four more horizontal wells into the Vaca Tar Sand Formation this first quarter of 2008. Based on the production of the Pleasant Valley No. 1 test well which has far exceeded all expectations, Tri-Valley will begin its developmental drilling campaign immediately with the four well suite on its property in the Oxnard Oil Field near Ventura, California.
The Vaca Tar Sands have many of the characteristics of Canada’s vast Athabasca Tar Sands and Tri-Valley is applying methods derived from four decades of technological evolution in the Athabasca that have never before been applied in the Oxnard field. A brief initial test steaming of the PV No. 1 enabled it to flow more than 300 barrels per day and achieve a steady production rate in excess of 200 barrels per day on pump.
"We believe we can drill the first suite of four wells this quarter subject to rig availability and have those all steamed and producing by the end of the second quarter. In fact, we envision being able to drill up to 20 such shallow horizontal wells on our properties here," said Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co.
Tri-Valley has acquired a fleet of steam generators in anticipation of an expanding, ongoing injection program to treat the Vaca formation in multiple wells to build production, revenues, reportable reserves and share value. The Company believes it can ultimately achieve several thousand barrels per day from its field development program on the Vaca zone alone, using steam-assisted gravity drainage (SAGD) methods where one wellbore is used to inject the steam for heat and pressure into the formation to drain the treated hot oil into a collector bore. SAGD has achieved much higher production and recovery rates in the Athabasca heavy oil fields and Tri-Valley now expects to handily exceed historic production and recovery rates in the Oxnard field with this approach.
"We are eager to reward our drilling partners, shareholders, and royalty owners from this new production paradigm as we accelerate our drilling campaign here. As time goes on, consumers will increasingly benefit from development of presently unconventional reserves and Tri-Valley is pleased to lead the way to enhanced re-exploitation in California," said F. Lynn Blystone, president and chief executive officer.
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