This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tri-Valley Corporation Commences Development And Enhanced Oil Production Program At The Claflin Project

Stocks in this article: TIV

Tri-Valley Corporation (NYSE Amex:TIV) today announced a new initiative to expand oil production at its Claflin project in the Edison Oil Field, near Bakersfield, California.

During 2010, the Company began its initial effort on the Claflin property to reactivate partially depleted oil wells previously drilled in the 1960’s. Today Tri-Valley has four reactivated wells in production at Claflin, averaging approximately 30 barrels of oil per day with an average API gravity of 16 degrees from a cyclic steaming program. Based on existing reserves, analog production data from neighboring operations, and the results of these initial four wells, the Company is embarking on a program to further develop and enhance this producing asset. The first phase of Tri-Valley’s plan for Claflin includes acquisition of 3-D seismic data for the property and the drilling of five new vertical wells by June 2011. This initial phase is estimated to require $2 million in new capital including expenditures for upgrades to facilities and infrastructure to reduce operating costs associated with current and future oil production. The Company is in the process of contracting the 3-D seismic acquisition work and arranging for a rig to spud the first well. The Company’s net share of Claflin’s total proved reserves is estimated at 1.7 million barrels.

“Tri-Valley has a 100% working interest in both the Claflin and the adjoining Brea lease, and as a result, these two 80-acre leases offer an excellent opportunity to substantially increase our net oil production,” said Maston N. Cunningham, President and CEO of Tri-Valley. “The Edison Field is the site of a proven oil reserve, and our leases cover attractive portions of the area at relatively shallow depths. In addition, the Claflin and Brea economics are favorable to Tri-Valley with 87.5% and 83.33% revenue interests accruing to the Company, respectively.”

“While we accomplished a great many things in 2010, in my opinion the most important accomplishment was positioning Tri-Valley to aggressively move forward in the development of our oil properties in 2011. We have been able to clean up our balance sheet, address our capital structure, and as a result, we can use proceeds from our ATM (at the market) financing to fund these projects,” continued Mr. Cunningham. “We are also furthering our understanding of the asset by conducting a 3-D seismic study that will help us pinpoint the most productive areas to drill at the site and reduce drilling risks for the horizontal wells. With positive results from Phase 1 of this program, we will expand into Phase 2 which will include the drilling of horizontal wells and additional vertical wells, and later, initial drilling on the Brea site.”

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs