First Moffat Workover Flowing Natural Gas

Tri-Valley Corporation reports that the Moffat No. 2 is now flowing natural gas after working over the well that had been shut in since 1960 on its Moffat Ranch East property near Madera, California. In addition to the sanded up well bore, the Company found extensive debris which had to be fished out before 80 feet of zone could be re-perforated. The well is choked back as a caution to sanding up and is flowing a steady 200,000 cubic feet per day through a 10/64 choke prior to hydraulic fracturing.

After several days or even weeks of measuring draw down pressures as well as any tendency to sand up the well bore, the well flow may be increased until an optimal production rate is reached and/or the producing formation has been foam fractured.

Tri-Valley is now completing a work over on a second well, the MMR No. 8-12, that also contains extensive debris and has essentially been shut in for over 10 years, to see if it will flow again.

It is further planned to reenter the Northwest Moffat No. 2-7-1 which was drilled in 2003, never completed and then abandoned. Tri-Valley's technical team has reinterpreted the data with current log analysis and determined a substantial section should have been completed.

Tri-Valley is now permitting to drill the Moffat Ranch No. 86-7, a 10,300-foot exploratory basement well designed to evaluate numerous formations that are productive in nearby fields but never tested on its Moffat Ranch East leasehold of more than 5,700 acres now expanded from the original 3,200 acres as favorable data emerged.

"With over 12 billion cubic feet of gas production since discovery in September 1943, the Moffat Ranch field is an ideal candidate for re-exploitation with hydraulic fracturing of existing producing zones and exploration of many other as yet untested intervals," said Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co.