The Company's Oil Creek Prospect near Coalinga, California, is now recovering some oil with only 1/3 of the lower Gatchell Zone perforated. Until the results are evaluated, Tri-Valley is deferring perforation of any more of the section.
Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co., noted that there are plans to test an additional five intervals in the well with indications of hydrocarbons, as well.
Location is being cleared to move in a production rig on Tri-Valley's Oil Lake Prospect some 40 miles southwest of its Bakersfield, California headquarters and 120 miles south of Oil Creek.
Mr. Kandle advised that Tri-Valley would "high grade"' the 370 feet of hydrocarbon shows in the Oil Lake well to initially concentrate on 150 feet of interval logging two ohms and above.
On its Sunrise horizontal natural gas well near Delano, California, Tri-Valley is preparing a program to hydraulically refracture the Sunrise-Mayel No. 2HR, this time using diesel oil fracturing fluid to completely eliminate any possibility that clay swelling is inhibiting commercial flows of natural gas.
"Since there is no material change in the integrity or promise of these very large target prospects, we have no explanation for the pressure on our stock at the American Stock Exchange. We believe we will deliver exceptional upside on completion success on one or more of these prospects," said F. Lynn Blystone, president and chief executive officer of the publicly traded parent, Tri-Valley Corporation.
"These prospects are more of a process than an event," Blystone noted, "and require some patience until they reach their conclusion."
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