Tri-Valley Makes Natural Gas Discovery in California
|Wednesday, February 25, 2004
Tri-Valley has successfully completed a zone in its Elk Ridge Natural gas exploration prospect some 35 miles northwest of Bakersfield, California. The dry gas is good quality and the Company expects to initially flow the well unstimulated from a tight zone at 350,000 cubic feet per day during the reserve test period. Later, the Company may choose to hydraulically fracture the zone to stimulate increased production. The well bore has additional untested prospective zones up hole.
"This completion highly encourages us to begin planning additional development wells in our significant lease block in the near future and the Company already has a customer for the gas to be served through a nearby pipeline," said Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co.
On another front, Tri-Valley has re-perforated a 1,000-foot section in its Sunrise-Mayel 2HR in preparation for re-fracturing using diesel oil. Its promising McClure Shale formation holds billions of cubic feet of natural gas, but the zone has very low permeability and requires breaking up to attain commercial flow rates. The frac is expected to be performed very shortly.