Tri-Valley Acquires Temblor Valley Producing Properties
Tri-Valley Corporation has taken possession of the 850-acre Temblor Valley producing properties and is moving immediately to expand production by reworking existing wells while applying new technology in drilling new wells. The purchase price was $2,850,000 cash.
Comprised of two separate properties, the Temblor Valley Projects will be developed through a joint venture with Tri-Valley managed Opus I Drilling Program LP to rapidly rework existing wells while drilling new horizontal wells.
Of immediate interest is the Temblor Valley West property of approximately 700 acres some 40 miles west of Bakersfield, California and abutting the prolific South Belridge Oilfield, currently the third highest producing field in the contiguous 48 states. Tri-Valley sees two examples of high density and horizontal drilling on similar acreage blocks in the area that each produce well in excess of 4,000 barrels per day and it plans to follow that approach in developing its property.
Tri-Valley's technical staff believes there are several other prospective zones in addition to the traditional producing zones and will drill an appraisal well to further evaluate those opportunities. The Company envisions a combination of deeper vertical wells amongst the shallower horizontal wells to fully exploit the many producing and prospective intervals.
Tri-Valley will move its newly purchased production rig to Temblor Valley West to begin rework of a number of the 54 wells on that property which could occupy it for all of 2006. Also in the first quarter, Tri-Valley will take delivery of a second production rig with the added capability of drilling up to 8,000 feet and plans to use that rig to begin horizontal drilling.
"Temblor Valley West is ideal for re-exploitation in that it is favorably situated yet lightly drilled and never with modern drilling and recovery methods. Even small acreages in the area have yielded huge amounts of oil using old style vertical wells and those employing modern aggressive drilling and drainage techniques have shown the way to get a lot more oil out than previously thought possible," said Joseph R. Kandle, president of the operating subsidiary, Tri-Valley Oil & Gas Co.
- Tri-Valley Concludes Phase I of Claflin Drilling Program (Apr 28)
- Drilling Commences at Tri-Valley's Claflin Project (Apr 04)
- Tri-Valley Starts Development, Enhanced Oil Production at Claflin Project (Feb 10)