Officials and technical consultants who assembled the play speculate the possibility of 85 million barrels of oil equivalent off of the northeast flank of the anticlinal closure.
The Buena Vista Oil Field, which has produced over 600 million barrels of oil and over 1.1 trillion cubic feet of natural gas, has 15 total zones in the field. Tri-Valley's test well will penetrate at least 7 of these zones to 7,500'.
"We believe the potential for oil and gas is high in the relatively shallow formations on this lease and perhaps even deep horizons, although this well will not test below 7,500 feet," said Joseph R. Kandle, TVOG president.
Tri-Valley has recently drilled a string of very large prospects in the Bakersfield region with emerging success of discoveries of exceptional amounts of oil and gas in place in "tight" formations which require additional engineering to produce at commercial rates. The Company's most recent drill, the Oil Creek Prospect near Coalinga, California, appears to have more conventional formations and has logged in excess of 800 feet of oil and gas shows from 4,500 feet to bottom at 10,600 feet. It is in the process of being completed for a production test over the next four weeks. Tri-Valley's Oil Lake Prospect is expected to be ready for drilling within two weeks.
"We have an inventory of more than two dozen very large targets, any one of which could add exponential value to our stock as well as exceptionally reward our private investor drilling partners on discovery. Success on targets of this magnitude will ultimately help California consumers who need abundant new supplies to maintain reasonable cost of petroleum products," said F. Lynn Blystone, chief executive officer.
"In our country, the responsibility of finding new reserves is left to the private sector and investors who can afford the risk of loss have an extraordinary upside opportunity with really big prospects such as Tri-Valley assembles," Blystone says.
He noted that the Bakersfield area is a premier oil-producing region with current daily production three times as much as the entire State of Oklahoma. California, as the world's fifth largest economy, imports nearly 60% of its oil and nearly 90% of its preferred fuel, natural gas, and its demand increases apace against declining supply. Tri-Valley is exploring for major new supplies to at least offset decline if not add beyond it.
"California is increasingly beholden to outside sources for its energy needs which has led to a political upheaval in how that mounting crisis should be dealt with. We believe that our massive exploration program, along with other companies' efforts, is the only real way to make the difference between inexpensive abundance and skyrocketing prices associated with deficient supply and big projects like Oil Creek and Oil Lake can reward everyone, shareholders, drilling partners and consumers," Blystone said.
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