Tri-Valley to Increase Oil Production in Temblor Valley East

Tri-Valley Corporation has commenced operations to deepen wells at its Temblor Valley East property about 15 miles east of Bakersfield, California. Located in the prolific Edison Oilfield, Tri-Valley's technical team believes the property appears to have deeper undrained areas, which could contribute to a substantial increase in oil production by re-entering and deepening the well bores to the undrained areas.

The Company is launching this operation with its own drilling rig, which has just completed drilling a new well on the companion Temblor Valley West property some 40 miles west of Bakersfield on the flank of the huge South Belridge Oilfield. After log evaluation, Tri-Valley elected to run pipe on an additional 1,500 feet of Diatomite zone to complete the entire 2,000 feet of oil bearing formations on the Temblor Valley West delineating well.

Tri-Valley already has a waterflood program in the Etchegoin zone on the Temblor Valley West property as well as cyclic steaming underway on the first of five delineating wells drilled into the Diatomite formation. The second high pressure super heated steam unit is scheduled to be on site next week, with a third by the end of the month and three more ready by the fourth quarter.

One of these will be sent to the Company's Pleasant Valley property in the Oxnard Oilfield where Tri-Valley will drill its first vertical appraisal well and then convert it to a horizontal well bore for steamed production.

"All of this is part of our effort to build production, revenue, reportable reserves and share value this year. Oil price is climbing higher as we do this to compound the increase in value we can bring to our shareholders," said F. Lynn Blystone, president and chief executive officer.