Tri-Valley Corporation (NYSE Amex:TIV) today announced its financial results for the fourth quarter and full year ended December 31, 2010.
Total revenue for the fourth quarter of 2010 increased $1.5 million over total revenue in the fourth quarter of 2009 to $1.9 million, primarily due to gains on the sale of assets. Oil and gas revenues increased 28% to $388,000 in the fourth quarter of 2010 compared with $304,000 in the fourth quarter of 2009, reflecting higher oil prices and increased oil production. Net production in the recent fourth quarter totaled 5,109 barrels of oil compared with 3,609 barrels of oil in the same quarter of 2009, an increase of 42%. Net production costs increased 57% in the 2010 fourth quarter compared with the same quarter a year ago, as a result of reactivation of the Company’s wells and production activities at its Claflin property.
For the full year, total revenue was $4.9 million in 2010 compared with $1.5 million in 2009. The increase was driven by gains on the sales of assets, including two non-strategic properties in California and the Admiral Calder calcium carbonate quarry in Alaska, as well as a significant increase in revenues from oil and gas production. Oil and gas revenues increased 70% in 2010 to $1.8 million compared with $1.0 million in 2009. The increase was the result of higher oil prices, increased production at the Pleasant Valley oil sands project in Oxnard, and new production at the Claflin project near Bakersfield, California. Net production in 2010 totaled 25,796 barrels of oil compared with 21,092 in 2009. Production costs decreased in 2010 by 6% compared with the prior year, largely due to reductions in contract services that were made during the second half of 2010.
“Our financial results reflect successful execution on several key initiatives that we set forth at the beginning of the year,” said Maston Cunningham, Tri-Valley’s President and CEO. “During 2010 we increased oil production, reduced production costs, moved forward on our plans to monetize our mineral properties in Alaska, and significantly strengthened the balance sheet. We ended 2010 with stockholders’ equity of $6.2 million and $600,000 in cash, much improved from the $1.5 million in stockholders’ equity and $300,000 in cash at the end of 2009.”