Tri-Valley Commences Ops on Fourth Temblor Valley Well

Tri-Valley Corp. said that its subsidiaries, Tri-Valley Oil & Gas Co. and Great Valley Production Service Co. LLC, are meeting field development targets and gaining momentum.

Operations to drill the fourth Temblor Valley development test well are underway to further define the producing horizons now thought to extend significantly beyond the original mapped areas of closure. The Lundin-Weber D-188-31 well will be approximately 2,500 feet south of the recently drilled L-W D-540-30 well still undergoing testing of the three main formations that produce in the prolific South Belridge Oil Field some 40 miles northwest of Bakersfield, California. The diatomite zone in the well is scheduled for hydraulic fracturing in early March by Halliburton.

"We are especially interested to see if the new diatomaceous zone we've identified in our previous wells extends south and west of our originally mapped closure as that could add significantly to the ultimate oil in place," said Paul Hacker, Senior Geologist for Tri-Valley Oil & Gas Co.

The first development well, the L-W D-352-30, is now receiving preliminary steam as it awaits arrival of the larger generator which can deliver about 1,000 barrels per day of 600+ degree F steam to heat the diatomite formation to the point of fracturing the zone for greater production rate.

Tri-Valley is meeting its timeline goals on restoring idle wells to production on its Temblor Valley West and East properties. Thirty-four wells are now operating on the Temblor West lease and management has decided to activate another 10 idle wells as producers, leaving five wells to be injectors for the Etchegoin formation water flood program to commence in March. Another eight idle wells will be activated by the end of March on the Temblor Valley East property in the Edison Oil Field, 15 miles east of Bakersfield. Work has already begun on better control of the high water production of the field to enhance the oil portion of the fluids produced by the Edison wells. Further, Tri-Valley geologists and engineers have begun mapping additional prospects for new wells to be drilled into existing producing horizons and other prospective zones on the properties.

Joseph R. Kandle, president of the three subsidiaries, noted how the staffs and crews of the recently formed entities are gaining momentum as a team to develop the producing properties with new geology, re-working idle wells, engineering new recovery programs and drilling new wells.

"Our field people are demonstrating individual and team skills in coordination with the technical staff to meet our corporate goals to rapidly add value to our stock and a multiple return for our drilling partners. I couldn't be more pleased," Kandle said.

Kandle also noted that the Company's subsidiary, Great Valley Drilling Company LLC, has begun its first outside contract drilling a geothermal well north of Austin, Nevada for a Canadian firm. With dozens of geothermal wells proposed, GVDC expects to keep the rig fully employed in 2007.