Tri-Valley Begins Exploration in Temblor Valley Acreage

Tri-Valley Corporation has begun exploitation of its Temblor Valley oil property in preparing location for the first test well and moving production and drill rigs to the property next week. All this activity is designed to rapidly build production and revenue from investment the Company made earlier.

The production rig will workover 17 idle stripper wells before beginning workovers on 25 currently producing wells to maximize production from all existing well bores. These wells all produce from the shallow Etchegoin formation at only 750 feet.

After studying the field, the Company believes greater potential of new, flush production lies in the deeper diatomite zone beginning at 750 feet where it expects to encounter 28 gravity free flowing oil.

Tri-Valley has filed notice to drill four Lundin-Weber wells which will be cored to examine all formations to 4,000 feet. The wells will likely be completed in the diatomite section and then hydraulically fractured to enhance production and provide data to design subsequent horizontal wells usually capable of producing at several times the rates of vertical wells.

"Tri-Valley has incurred substantial planned losses in assembling these assets. With our own rig fleet in house we are exploiting these properties now in a march to restore greater profitability than ever before," said F. Lynn Blystone, president and chief executive officer.