Tri-Valley to Recomplete Moffat Ranch East Wells

Tri-Valley has commenced operations to rework two natural gas wells and recomplete a third on its Moffat Ranch East property near Madera in California's Great Central Valley. Tri-Valley will begin building wet weather locations to work on the existing wells and later for a 10,000-foot basement test well to appraise an expected eight different horizons with nearly three square miles of mapped closure.

The two rework wells previously produced until sanding up and, after clean up, Tri-Valley Oil & Gas Co., the Company's operating subsidiary, may also hydraulically fracture the producing zone to see if flow rates can be enhanced. The third well was prematurely abandoned and new data suggests that it should be reentered for a recompletion try.

"We view the Moffat Ranch East Gas Field as an ideal candidate for re-exploitation coupled with great exploration potential for new producing reservoirs. This is a big field area, nearly 8.5 square miles, with a good production history and lots of untested zones on which we can apply modern techniques," said Joseph R. Kandle, president of Tri-Valley Oil & Gas Co.

Tri-Valley expects to move in the production rig this month to begin work immediately and the goal is to achieve production in November. Meanwhile the Company is awaiting its own production rig to be available sometime in November. When the drilling component is added to Tri-Valley's own equipment, it will handle even horizontal wells with a bore length of up to 8,000 feet. Deeper wells will be drilled by rig contractors as available.

The Company's strategy is to use its own equipment to be able to be busy reworking, recompleting or drilling new wells everyday to increase production while waiting for the larger rigs to drill the deeper prospects in Tri-Valley's proprietary exploration inventory.

The Moffat Ranch Field has given up more than ten billion cubic feet of natural gas from 20 wells in the Eocene interval and about two billion cubic feet from the four wells in the Cretaceous zones in the whole 5,400 acres. Tri-Valley's technical staff postulates target potentials in the range of 25 billion cubic feet in just the 3,400-acre east section and plans to test all horizons for hydrocarbon content in pursuit of those potentials, although the risk is high that many will be found unproductive.