Tri-Valley Closes Drill Rig Purchase
Tri-Valley Corporation announced that its drilling subsidiary, Great Valley Drilling Company, LLC, has closed the purchase of the 10,000-foot with 3 1/2" drill pipe rated drilling rig from Equipment 2000 of Fallon, Nevada, and will take delivery of the rig effective midnight, December 30, 2006.
The rig, with a full complement of rolling stock and a 45-ton crane, is qualified to work in both Nevada and California. Initially, it is planned for the rig to remain in Nevada primarily drilling geothermal wells and Tri-Valley's own 17,000-acre exploration play, the Oil Springs Prospect in Railroad Valley, 40 miles southwest of Ely.
The present owner, Gary Borgna, will become General Manager of Great Valley Drilling Company, LLC, and the crews will become employees of GVDC and operations will be conducted from Fallon and GVDC's headquarters in Bakersfield, California. Borgna himself has 44 years' experience in drilling all types of petroleum and geothermal wells on the west coast of the United States.
"We expect to be a significant force in the drilling of geothermal wells in Nevada, a sector of energy business enjoying increasing favor among junior and midsized companies. We have the only Nevada-based rig and experienced crews for those opportunities," said Joseph R. Kandle, president of both GVDC and the operating subsidiary, Tri-Valley Oil & Gas Co.
As soon as possible, GVDC expects to add a production service rig and another drilling rig to its fleet there since Nevada is becoming an exploration province for an increasing number of companies who believe that Nevada could host very large oil and gas targets as well.
"Acquiring this rig with its experienced crew represents a very significant advance for Tri-Valley Corporation and its shareholders, particularly during this prevailing period of widespread severe rig shortages, and allows us to drill some of our own prospect inventory as well as contracting it out for third-party work to earn additional income," said F. Lynn Blystone, president and chief executive officer.
- 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)
Company: Equipment 2000 more info
- Tri-Valley Closes Drill Rig Purchase (Dec 28)