Tri-Valley Drilling Oil Lake Play
|Friday, October 31, 2003
Tri-Valley has begun drilling its Oil Lake Prospect in an attempt to extend the easterly position of the Buena Vista oil field some 35 miles southwest of Bakersfield, according to F. Lynn Blystone, president and chief executive officer.
The prospect is another of the two dozen very large exploration targets in the Company's drilling program and the speculative potential estimated by Tri-Valley's technical staff and consultants is 85 million barrels of oil equivalent. While no proven reserves exist at this point, the well bore is programmed to test at least seven of the fifteen separate known intervals that historically produce in the area.
Totaling 3,000 acres, the play was generated from study and evaluation of some 45,000 acres in the area. Billion-barrel fields are within 10 miles of the drillsite and statistics show that the best place to look for a billion-barrel field is within 12 miles of an existing billion-barrel field.
"We select very large targets where discovery success can inject massive new value in our shares as well as exceptionally reward our drilling partners. A dry hole on a big target is a loss the same as a dry hole on a small target. But a discovery on a big target is an exponential benefit," Blystone said.
Earlier this week, Tri-Valley began testing its previously drilled Sunrise and Oil Creek prospects, where it has found indications of very large amounts of oil and gas in place. Some of the formations in the Sunrise well are tight and present additional engineering challenges to obtain commercial flow rates and the Company is working apace to achieve production that will prove exceptional reserves for the premium California market. The initial Oil Creek well results will not be known for several days and the Company has nine potential zones totaling more than 800 feet for testing.